A company has an EBIT of $3,715 in perpetuity. The unlevered cost of capital is 14.30%, and there are 20,570 common shares outstanding. The company is considering issuing $8,160 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 9.45% and the tax rate is 26%. What is the weighted average cost of capital after the restructuring?

Question 12 options:

	12.56%
	12.88%
	13.20%
	13.52%
	13.84%