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. 13.60%

b. 11.36%

c. 10.08%

d. 4.8%

e. None of the answers in this question are correct.