The current total market value of RRT Co. is $10 million, The firm plans to raise and invest $5 million in a new project. Compared to the risks of the firm's existing assets, the project is about average-risk. The firm's present market value capital Structure, shown below, is considered optimal. There is no short-term debt and preferred stock. The firm intends to finance the new project in a way that maintains the capital structure. Debt: $3 million Equity: $7 million The firm will issue new bonds and common stocks to finance the project. The bonds will have a coupon rate of 10% and are expected to be issued at par. The current stock price per share is $30. Assume the stock is priced in equilibrium. The firm just paid a dividend of $2 per share for the quarter. The dividend is expected to grow at 8% per year. The floatation cost for new stock issuance is 5%. The corporate tax rate is 40%. What is the WACC for the project? Select one: a. .2215 b..2551 C..3124 d..2826 The correct answer is: 2826