Answer this question based on the following data for a global firm.

• average pretax cost of debt = 8%
• average cost of equity = 13.6%
• average tax rate = 40%
• the firm raises funds by borrowing 20 million dollar and issuing equity in the amount of 30 million dollar.

The before-tax weighted average cost of capital of this firm is:

A. None of the answers of this question are correct

B. 11.36%

C. 13.60%

D. 4.8%

E. 10.08%