A company has an EBIT of $4,940 in perpetuity. The unlevered cost of capital is 16.22%, and there are 26,427 common shares outstanding. The company is considering issuing $10,155 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 11.29% and the tax rate is 34%. What is the weighted average cost of capital after the restructuring?

12.80%

13.15%

13.50%

13.84%

14.19%