Use the following data to answer Question 16: The following data applies to UK Company: UK has a target debt-equity ratio of 0.5. UKs 5-year bonds have a current yield of 11.15% and a par value of $1000. The market value of each bond is $1075.82. UK is a 5% constant growth firm that just paid a dividend of $3.00. UK's stock sells for $31.50 per share. The companys marginal tax rate is 40%.

16. The companys weighted average cost of capital is closest to: *

10 points

A. 12.23%

B. 11.68%

C. 12.0%

D. None of the above