Dolphin Corporation has a capital structure that is 35% debt and 65% equity. The firm is considering a project that requires an investment of $5.2 million. To finance this project, Dolphin plans to issue 8-year bonds with a yield to maturity of 11.5%. The cost of common stock (equity)is 14%. This corporation is subject to a marginal tax rate of 30%. What is Dolphin's weighted average cost of capital (WACC)?

11.6%

13.6%

11.4%

13.1%

11.9%