A company$$s capital structure is as follows.

$$m

$10$ million $1$ ordinary shares $10$

Reserves $4$

$13\%$ irredeemable loan stock $7$

$$

$21$

$$

Current market prices for the company$$s securities are as follows.

$1$ ordinary shares $280$p

$13\%$ irredeemable loan stock $100$

The company is paying corporation tax at a rate of $30\%.$ The cost of the company$$s equity capital has been estimated at $12\%$ per annum.

The company$$s weighted average cost of capital for capital investment appraisal purposes is

A$.$

$11\mathrm{.}42\%$

B$.$

$12\mathrm{.}20\%$

C$.$

$11\mathrm{.}03\%$

D$.$

$12\mathrm{.}30\%$