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Rosita's has a cost of equity of 13.76 percent and a pretax cost of debt of 8.5 percent. The debt-equity ratio is .60 and the

Rosita's has a cost of equity of 13.76 percent and a pretax cost of debt of 8.5 percent. The debt-equity ratio is .60 and the tax rate is 34 percent. What is Rosita's unlevered cost of capital?

A) 14.08%

B) 14.60%

C) 12.27%

D) 11.83%

E) 13.97%

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