Use the following information on ABC, Inc. to answer the next three questions:

Risk$-$free rate: $3\mathrm{.}20\%$

The market risk premium: $12\mathrm{.}40\%$

Common stock's beta: $1\mathrm{.}35$

Company's debt is in the form of $6-$year, $8\mathrm{.}6\%$ bonds $($semi$-$annual$),$ face value of $$1,000,$ selling for $$946\mathrm{.}52.$

The company's finances its needed capital with $30\%$ debt and $70\%$ common equity.

The company's marginal tax rate: $30\%$

Calculate the cost of common equity for the company

$19\mathrm{.}94\%$

$15\mathrm{.}56\%$

$16\mathrm{.}74\%$

$12\mathrm{.}42\%$

Calculate the cost of the company's debt

$4\mathrm{.}90\%$

$5\mathrm{.}37\%$

$10\mathrm{.}73\%$

$9\mathrm{.}80\%$

If the answers to the above questions are RD $=9\mathrm{.}80\%$ and RE $=19\mathrm{.}94\%,$ calculate the weighted average cost of capital for the company

$16\mathrm{.}90\%$

$10\mathrm{.}78\%$

$16\mathrm{.}02\%$

$14\mathrm{.}87\%$