Kihei, Inc. has determined that its optimal capital structure consists of 60% equity and 40% debt. Kihei must raise additional capital to fund its upcoming expansion and its tax rate is 25%. The firm has $0.6 million in retained earnings that has a cost of 10%. Its investment bankers have informed the company that it can issue an additional $4 million of new common equity at a cost of 12%. Furthermore, the firm can raise up to $1.0 million of debt at 7% and an additional $3 million at 9%. The firm has estimated that the proposed expansion will require an investment of $5 million. What is the average after-tax cost of capital for the entire $5 million that Kihei will be raising? a. 10.48 percent O b. 11.23 percent O c. 8.91 percent O d. 9.36 percent e. 10.87 percent