The following information is available for a company:

Bonds are priced at face value and have an annual coupon rate of 9.2%. Preferred stock is priced at $8.18 and pays an annual dividend of $1.35. Common equity has a beta of 1.3. The risk-free rate is 4% and the market risk premium is 11%. Capital structure: Debt = 30%; Preferred stock = 15%; Common equity =55%. The tax rate is 35%.

The weighted average cost of capital (WACC) for the company is closest to

Select one: A. 10% B. 13.4% C. 11.5% D. 14.3%