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Cinco De Mayo has a target debt-equity ratio of 0.64. The yield to maturity on its bonds is 9 percent. Its cost of equity is

Cinco De Mayo has a target debt-equity ratio of 0.64. The yield to maturity on its bonds is 9 percent. Its cost of equity is 19 percent. The corporate income tax rate is 35 percent. Calculate the WACC for this company.

A. 13.87%

B. 13.17%

C. 10.98%

D. 14.56%

E. 10.58%

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