Precision Cuts has a target debt-equity ratio of .48. Its cost of equity is 16.4 percent, and its pretax cost of debt is 8.2 percent. If the tax rate is 22 percent, what is the company's WACC?

a.

13.16 percent

b.

11.72 percent

c.

12.91 percent

d.

12.84 percent

e.

11.28 percent