TAFKAP Industries Has 8 Million Shares of Stock Outstanding Selling

Multiple Choice

TAFKAP Industries has 8 million shares of stock outstanding selling at $17 per share and an issue of $20 million in 7.5 percent, annual coupon bonds with a maturity of 15 years, selling at 109 percent of par ($1,000) . If TAFKAP's weighted average tax rate is 21% and its cost of equity is 12.5 percent, what is TAFKAP's WACC?

A) 11.02 percent
B) 11.49 percent
C) 12.16 percent
D) 12.83 percent