Jemisen's firm has expected earnings before interest and taxes of $1,600. Its unlevered cost of capital is 13 percent and its tax rate is 34 percent. The firm has debt with both a book and a face value of $2,400. This debt has a 9 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?

11.81 percent

12.72 percent

12.04 percent

12.34 percent

11.87 percent