The ABC Co. has an EBIT of $1,200, an unlevered cost of capital of 11%, and debt of $2,750. The cost of debt is 7.25%. If the tax rate is 31%, what is the WACC of ABC Co.?

A) 9.88%

B) 10.56%

C) 11.35%

D) 12.47%

E) 13.86%