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SIROM Scientific Solutions has $5 million of outstanding equity and $10 million of bank debt. The bank debt costs 7% per year. The estimated equity

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SIROM Scientific Solutions has $5 million of outstanding equity and $10 million of bank debt. The bank debt costs 7% per year. The estimated equity beta is 2 . If the market risk premium is 9% and the risk-free rate is 3%, compute the weighted average cost of capital if the firm's tax rate is 25%. A. 10.5% B. 11.03% C. 12.08% D. 11.55%

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