ABC Corp. has a target return on equity of 15.70% and the yield to maturity on its long-term debt is 7.20%. The long-term debt accounts for 26% and equity the remainder of its total market value. If its tax rate is 20%, what is the firm's weighted average cost of capital? (No excel answers please).

a. 16.19%

b. 10.73%

c. 8.94%

d. 19.43%

e. 13.12%