Use the Information for the Question(s) Below

Use the information for the question(s) below.
KT Enterprises is considering undertaking a new project. Based upon analysis of firms with similar projects, KT has determined that an unlevered cost of equity of 12% is suitable for their project. KT's marginal tax rate is 35%, its borrowing rate is 7%, and KT does not believe that its borrowing rate will change if the new project is accepted.
-If KT expects to maintain a debt-to-equity ratio for this project of .6,then KT's project-based WACC,r_wacc,for this project is closest to:

A) 10.5%
B) 11.1%
C) 9.6%
D) 10.8%