f the cost of equity capital is 15% p.a., the market value of equity is $5 million, the company tax rate is 30%, the cost of debt is 12% p.a. and its market value is $7 million, what is the cost of capital?

Question 8Select one:

a.

11.15%

b.

11.9%

c.

13.25%

d.

12.8%