ABC Inc. is evaluating a project. The ABC intends to use 30% debt in funding the project. ABC identifies 5 comparable companies with the following equity betas and debt/equity ratios. While the comparable companies have varying marginal tax rates ABCs marginal tax rate is 32%. The current ten year treausy rate is 2.5% and the market return (Rm) is estimated to be about 8.5%. The yield on the company's corporate bonds is 4%

Company	Equity Beta	D/E Ratio	Marginal Tax Rate
A	1.38	0.25	25%
B	1.65	0.55	30%
C	2.11	0.75	35%
D	1.54	0.50	30%
E	1.83	0.60	30%

The weighted average cost of capital is closest to ____.

Group of answer choices

a)10.80%

b)7.95%

c)13.20%

d)No of the answer choices is correct

9.6%

11.10%

Please show calculations