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The following data pertains to Xena Corp. Xena Corp. Total Assets $21,249 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity:

The following data pertains to Xena Corp.

Xena Corp.

Total Assets

$21,249

Interest-Bearing Debt (market value)

$11,070

Average borrowing rate for debt

10.2%

Common Equity:

Book Value

$5,535

Market Value

$23,247

Marginal Income Tax Rate

19%

Market Beta

1.64

Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's weighted-average cost of capital:

13.2%

10.7%

10.4%

12.6%

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