Green Roof Foods Currently Has a Debt-To-Equity Ratio of

Green Roof Foods currently has a debt-to-equity ratio of .63,its cost of equity is 13.6 percent,and its pretax cost of debt is 7.8 percent.The tax rate is 35 percent and the risk-free rate is 3.1 percent.The firm's preferred capital structure consists of 50 percent debt.What discount rate should be assigned to a new project the firm is considering if the project is equally as risky as the overall firm and will be financed solely with equity?

A) 7.80%
B) 9.76%
C) 5.07%
D) 9.34%
E) 10.70%