a company has $20 million of outstanding equity and $8 million of bank debt. The bank debt costs 5% per year. The equity beta is 1.4. If the market risk premium is 8% and the risk-free rate is 3%, calculate the weighted average cost of capital if the firms tax rate is 30%.

a.15.93

b. 11.14%

c. 17.44%

d. 15.17