PHD Inc. is investing in a new inventory system that will require the expenditure of $15 million. The money will be raised by issuing $5 million of bonds and $10 million of new common stock. The company estimates before-tax cost of debt to be 10%, and the cost of new common stock to be 15%. The tax rate is 30%. What is the weighted average cost of capital (WACC) for this project?

Question 18 options:

	11.15%
	12.33%
	13.25%
	10.25%