You are evaluating a project that requires $324,000 in external financing. The flotation cost of equity is 8.4 percent and the flotation cost of debt is 5.1 percent.

What is the weighted average flotation percentage if you maintain a debt-equity ratio of .35?

a) 6.35%

b) 7.24%

c) 8.15%

d) 7.54%

e) 7.89%