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SIROM Scientific Solutions has $ 5 million of outstanding equity and $ 1 0 million of bank debt. The bank debt costs 5 % per

SIROM Scientific Solutions has $5 million of outstanding equity and $10 million of bank debt. The bank debt costs 5% per year. The estimated equity beta is 2. If the market risk premium is 8% and the risk-free rate is 5%, compute the weighted average cost of capital if the firm's tax rate is 25%.
A.9.5%
B.10.45%
C.10.93%
D.9.98%
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