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Eastman Chemical Company (EMM) has a capital structure that is 37% debt and 63% equity financing. The yield to maturity on the firm's debt is

Eastman Chemical Company (EMM) has a capital structure that is 37% debt and 63% equity financing. The yield to maturity on the firm's debt is 3.83% and the required return on Eastman Chemical equity is 9.18%. Assuming a tax rate of 24%, what is Eastman Chemical's weighted average cost of capital?

A. 7.43%

B. 6.86%

C. 10.12%

D. 4.73%

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