Lunatic Industries has $40$ million shares outstanding trading at $$15$ per share. In addition, Lunatic has $$120$ million in outstanding debt. Suppose Lunatic's equity cost of capital is $11\%,$ its debt cost of capital is $6\%,$ and the corporate tax rate is $38\%.$ Lunatic's weighted average cost of capital is closest to:

Question $5$Select one:

a$.$

$9\mathrm{.}8\%$

b$.$

$10\mathrm{.}8\%$

c$.$

$11\mathrm{.}5\%$

d$.$

$13\mathrm{.}0\%$