The market value of ABC's bonds is $10 million while the market value of its common stock is $20 million, resulting in a debt/equity ratio of 0.33. The cost of common stock equity is estimated to be 17% using the DGM and 19% using the CAPM. The bond coupon rate and YTM are both 11% per year. The income tax rate is 40%. Assuming that only debt and common equity financing exist, what is the firms weighted average cost of capital?

A) 15.50%

B) 12.90%

C) 14.20%

D) 15.70%

E) None are true