A Firm Has Debt of $5,000,equity of $16,000,a Cost of Debt

Multiple Choice

A firm has debt of $5,000,equity of $16,000,a cost of debt of 8 percent,a cost of equity of 12 percent,and a tax rate of 21 percent.What is the firm's weighted average cost of capital?

A) 10.20 percent
B) 9.94 percent
C) 10.90 percent
D) 10.65 percent
E) 11.05 percent