Companys interest rate is 10%, and its tax rate is 35% with a long-term expected annual growth rate of 4%. The Companys total notes payable is $5,000,000, and its total stockholders equity (book) is $7,000,000. The market value of equity equals twice its total debt. What is Companys capitalization rate using WACC assuming the cost of equity is 20%?

10.37%

11.50%

14.37%

15.50%