Caltex Ltds cost of equity is 15 percent, and its after-tax cost of debt is 5 percent. If the company is financed with 50 percent ordinary shares, what is the weighted average cost of capital for Caltex Ltd if it is subject to a 30 percent company tax rate?

Select one:

A.

10.4%

B.

11%

C.

9.25%

D.

10%