Carrington Corporations after-tax cost of debt is 7%, and its cost of equity is 13%. Of the following interest rates:

6%, 8%, 10%, 12%, 14%, 16%, 18%

Using what you know about weighted average cost of capital (WACC), which of the above are possible WACCs for Carrington? Pick the answer that lists ALL that you cannot rule out.

A.

10%, 12%, 14%

B.

14%, 16%, 18%

C.

6%, 8%, 10%, 12%

D.

8%

E.

8%, 10%, 12%

F.

Any of these are possible

G.

10%

H.

6%, 8%

I.

12%