Tractor Supply Company (TSCO) is planning a $34.65 million project. This new project is to be financed by selling $13.89 million in new debt and $20.76 million in new common equity. The before-tax required return on debt is 4.26% and 10.71% for equity. If TSCP is in the 37.50% tax bracket, its weighted average cost of capital (WACC) is closest to

A.

6.41%.

B.

7.48%.

C.

8.81%.

D.

9.86%.