The following information related to Rome Ltd: Current cost of equity is 10% Ungeared cost of equity is 7% WACC is 6.70% Market value of: Equity is R 80 million Debt is R 15 million Tax rate is 27% Rome Ltd is planning to raise R 10 million of debt to repurchase shares. 8 According to Modigliani and Millers theory with tax, what would the WACC move to? (3) A 6.52% B 6.65% C 7.71% D 9.31%