A firms has a debt-equity ratio of 0.70 and a tax rate of 35 percent. The firm does not issue preferred stock. The cost of equity is 14.5 percent and the after-tax cost of debt is 4.8 percent. What is the weighted average cost of capital?

a. 10.50 percent

b. 10.67 percent

c. 11.06 percent

d. 11.38 percent

e. 11.57 percent