Review The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows. The debt has just been refinanced at an interest rate of 6% (short term) and 8% (long term). Assume that the book and market values of company's debt are the same. The expected rate of return on the company's shares is 15%. There are 7.46 million shares outstanding, and the shares are trading at 46. The tax rate is 25%. Calculate this company's weighed-average cost of capital. Cash and marketable securities Accounts receivable 1.500 120,000 Short-term debt Accounts payable Inventory Current assets Property, plant, and equipment Deferred taxes Other assets Total 125,000 Current liabilities 75,600 62.000 137,600 246.500 212,000 Long-term debt 208.600 45.000 89.000 Shareholders' equity 246,300 592.500 Total 592,500 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 8.52% b 10.74% C 11.02%