A company has an EBIT of $3,477 in perpetuity. The unlevered cost of capital is 13.58%, and there are 18,232 common shares outstanding. The company is considering issuing $7,350 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 8.76% and the tax rate is 23%. What is the weighted average cost of capital after the restructuring?

Question 6 options:

12.51%

12.82%

13.13%

13.45%

13.76%