Given the following information, compute the firms WACC:

• The firms cost of equity = 18%
• The firms before-tax cost of debt = 7%
• The firms capital structure is 30% long-term debt and 70% common equity
• The firms marginal tax rate = 25%

Group of answer choices

a 14.70%

b13.54%

c14.18%

d 9.08%