Cedar Corporation has a cost of equity of 13.4 percent and a pretax cost of debt of 5.8 percent. The debt-equity ratio (D/E) is 1.60 and the tax rate is 25 percent. What is the unlevered cost of capital?

A. 9.35%

B. 9.25%

C. 9.15%

D. 9.05%

E. 8.95%