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A company has current market value in equity of $750 million, and debt of $300 million. The current YTM on the bonds is 6.15%. The

A company has current market value in equity of $750 million, and debt of $300 million. The current YTM on the bonds is 6.15%. The market risk premium is 7% and the risk-free rate is 2%. The company has a beta of 1.25 and pays a 21% tax rate. What is the companys weighted cost of capital?

A) 16.87%

B) 13.11%

C) 9.07%

D) 8.87%

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