A 8.60%

B 11.53%

C 9.13%

D 10.03%

Assume that you have been hired as a consultant by XNB, a metal manufacturer, in order to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided Current assets Net plant, property, and equipment Total assets S 38,000,000 $101000.000 $10,000,000 $9,000,000 $19,000,000 Accounts payable Current liabilities Long-term debt (40,000 bonds, $1,000 par value) Total liabilities Common stock (10,000,000 shares) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 30,000,000 The stock is currently selling for $14.00 per share, and its noncallable $1,000 par value, 20-year 8.25% bonds with semiannual payments are selling for $905.00. The beta is 1 1, the yield on a 6 month Treasury bill is 2.50% and the yield on a 20-year Treasury bond is 5.25%. The required retum on the stock market is 9.00%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate s 40%, what is the best estimate of the firm's WACC