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The XYZ Co. has total assets of $20,000 and total debt of $8,000. The yield-to-maturity on its bonds is 9%. The cost of capital with

The XYZ Co. has total assets of $20,000 and total debt of $8,000. The yield-to-maturity on its bonds is 9%. The cost of capital with no debt is 15%. The tax rate is 34%. What is the WACC?

A)8.64%

B)10.58%

C)10.88%

D)11.39%

E)12.96%

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