QUESTION 14 ABC Corporation and XYZ Corporation are identical firms in all aspects except for their capital structure i.e. they have exactly the same assets/business but different capital structures). ABC is financed by 100% equity. XYZ is financed by 40% debt and 60% equity. The current WACC for ABC is 11%. XYZ currently borrows at a rate of 6%. The corporate tax rate is 20%. The current cost of equity for XYZ is? O A. 13.7% OB. 12.7% C. 11.5% OD. 10.0% E. 8.7%