Take It All Away has a cost of equity of 10.96 percent, a pretax cost of debt of 5.46 percent, and a tax rate of 40 percent. The company's capital structure consists of 72 percent debt on a book value basis, but debt is 38 percent of the company's value on a market value basis. What is the company's WACC?
A) 9.46%
B) 8.87%
C) 7.24%
D) 12.06%
E) 8.04%
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