Company XYZ is currently trading at $32 per share. The expected return of the market is 10.5% and the firm beta is 1.3. The company has an outstanding debt of $12 million quoted at 0.9 with a coupon rate of 8% and each bond has a face value of $1000. Coupons are paid out semi annually. The risk free rate is currently 3.5%. Assume that the firm debt will mature in 18 years, the company has 1.2m shares outstanding and that the corporate tax is 35%. What is the WACC?

Please show all your work

A) 11.14%

B) 12.6%

C) 11.84%

D) 4.56%

E) 9.143%