Hilmar Co. issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1/4. The cost of equity is 15.7 percent and the pre-tax cost of debt is 9.4 percent. The tax rate is 21 percent. What is its weighted average cost of capital (WACC)?

		11.41 percent
		14.05 percent
		12.90 percent
		13.26 percent