Springfield Corporation, Whose Tax Rate Is 34%, Has Two Sources

Multiple Choice

Springfield Corporation, whose tax rate is 34%, has two sources of funds: long-term debt with a market value of $6,000,000 and an interest rate of 9%, and equity capital with a market value of $16,000,000 and a cost of equity of 14%. What is Springfield's weighted average cost of capital (WACC) ?

A) 14.00%
B) 9.97%
C) 11.80%
D) 12.64%