The following data pertains to Xena Corp.:

Xena Corp.

Total Assets

$23,610

Interest-Bearing Debt (market value)

$11,070

Average borrowing rate for debt

10.2%

Common Equity:

Book Value

$ 6,150

Market Value

$25,830

Marginal Income Tax Rate

37%

Market Beta

1.73

Assume that the risk-free rate is 4.5% and the market risk premium is 6.2%.

Calculate Xena's weighted-average cost of capital.

Select one:

A.12.6%

B.9.0%

C.11.7%

D.13.8%