Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. The face value of each bond is $1,000 each. Bonds with similar characteristics are yielding 8.5 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.5 and sells for $40 a share. The risk-free U.S. Treasury bill is yielding 3 percent and the market risk premium is 8 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital? O 12.30% O 10.38% O 11.84% O 8.68% 0 14.40%