SIROM Scientific Solutions has $$8$ million of outstanding equity and $$8$ million of bank debt. The bank debt costs $5\%$

per year. The estimated equity beta is $1.$ If the market risk premium is $7\%$ and the risk $-$ free rate is $3\%,$ compute the

weighted average cost of capital if the firm's tax rate is $25\%.$

A$.7\mathrm{.}59\%$

B$.6\mathrm{.}21\%$

C$.6\mathrm{.}56\%$

D$.6\mathrm{.}9\%$