Alpha Corporation has earnings before interest and tax (EBIT) per annum in perpetuity of $28,714. The tax rate is 30%. The firm is funded $50,000 of debt and $100,000 of equity. The cost of equity is 18% and the cost of debt is 6%.

Given the information above, what is the appropriate discount rate if earnings before interest and tax (EBIT) are used to calculate the value of the firm?

A. 19.14%

B. 13.40%

C. 18%

D. 6%

E. None of the above