Keloff´s is a well known cereal brand. Over the previous years its equity beta has been 0.8. Currently, the firm faces interest rate of 2%, cost of debt 4%, market risk premium 8% and corporate tax rate 40%. In the past the firm has maintained a market leverage ratio 40% with continuous rebalancing. For each of the questions below choose the closest answer.

i. What is the WACC of the company currently?