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SIROM Scientific Solutions has $ 4 million of outstanding equity and $ 1 2 million of bank debt. The bank debt costs 5 % per

SIROM Scientific Solutions has $4 million of outstanding equity and $12 million of bank debt. The bank debt costs 5% per year. The estimated equity beta is 1. If the market risk premium is 9% and the risk - free rate is 4%, compute the weighted average cost of capital if the firm's tax rate is 25%.
A.6.71%
B.5.8%
C.5.49%
D.6.1%
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