Zonk Corp
the Following Data Pertains to Zonk Corp -Using the Above Information,calculate Zonk's Weighted-Average Cost of Capital:
A)

Multiple Choice

Zonk Corp.
The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions) :
$\begin{array}{l}\begin{array} { l } \text { Tatal assets } \\\text { Interest-bearing debt } \\\text { Average pre-tax borrowring } \\\text { Cammon equity: } \\\text { Badk value } \\\text { Market value } \\\text { Incame tax rate } \\\text { Market equity beta }\end{array}\begin{array} { r } \$ 7460\\\$ 3652\\10.5 \%\\\\\$2950 \\\$13685 \\35\% \\1.13\end{array}\end{array}$
-Using the above information,calculate Zonk's weighted-average cost of capital:

A) 11.5%
B) 7.97%
C) 7.48%
D) 10.90%