A company has an EBIT of $3,876 in perpetuity.The unlevered cost of capital is 14.30%, and there are 20,467 common shares outstanding.The company is considering issuing $8,115 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 24 options:

11.97%

12.29%

12.62%

12.94%

13.26%