GM Pfaudler Ltd. wishes to raise BHD 750,000 for the expansion of its plant. GM Pfaudler estimates that BHD 150,000 will be available as retained earnings and the balance of the additional funds will be raised as follows: a). Debentures (After-tax cost 8\%) BHD 300,000 b). Preference shares (Cost of preference 14\%) BHD 300,000 GM Pfaudler Ltd. uses marginal weights to calculate the cost of capital. Using marginal weights, compute the weighted average cost of capital, if the cost of equity capital is 20%. a. 12.60% b. 12.80% c. 12.65% d. 12.90%