The following data pertains to Xena Corp.

Xena Corp.
Total Assets	$21,249
Interest-Bearing Debt (market value)	$9,963
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, calculate Xena's cost of debt capital,

Select one:

a. 8.3%

b. 3.2%

c. 10.2%

d. 13.5%