ABC Co. has 10,000 bonds outstanding. The bonds have a face value of $1,000 each. The bonds are selling at 98% of face value, have an 8% coupon rate, make semi-annual payments, and mature in 10 years. In addition, there are 1.5 million shares of common stock outstanding with a market price of $40 a share and a beta of 1.15. The firm's marginal tax rate is 34%. The expected return on the market is 15% and the risk-free rate is 5%.

What is ABCs weighted average cost of capital? A) 23.89% B) 21.92% C) 16.92% D) 15.35% E) 14.95%