St. Johns Company is planning to issue $1,000 par value bonds. The bonds will have a coupon rate of 12 percent and will be sold at a market price of $980. Flotation costs will amount to 6 percent of market value. The bonds will mature in 20 years and interest payments will be made semi-annually. The company's marginal tax rate is 34%. What is the firm's cost of debt financing? O 11.52% 14.83% O 6.42% 8.66% 10.12%