Amy Co. has debt of $5,000, equity of $16,000, an unlevered value of $19,300, a cost of debt of 8 percent, a cost of equity of 12 percent, and a tax rate of 34 percent. What is the firm's weighted average cost of capital?

A. 7.29 percent

B. 7.94 percent

C. 8.87 percent

D. 10.40 percent

E. 11.32 percent