Use the following information to answer the question(s) below. Luther Industries has 25 million shares outstanding trading at $18 per share. In addition, Luther has $150 million in outstanding debt. Suppose Luther's equity cost of capital is 13%, its debt cost of capital is 7%, and the corporate tax rate is 21%. Luther's weighted average cost of capital is closest to:

A.

13.0%.

B.

11.1%.

C.

9.8%.

D.

10.8%.