A company has an EBIT of $3,140 in perpetuity.The unlevered cost of capital is 13.10%, and there are 16,870 common shares outstanding.The company is considering issuing $6,910 in new bonds at par to add financial leverage.The proceeds of the debt issue will be used to repurchase equity.The YTM of the new debt is 8.30% and the tax rate is 21%.What is the weighted average cost of capital after the restructuring?

Question 9 options:

11.86%

12.17%

12.47%

12.78%

13.08%