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 35% long-term debt and 65% common equity
• The firms marginal tax rate = 25%

Group of answer choices

A. 13.54%

B. 14.15%

C. 9.71%

D. 10.85%