Use the information to answer the following questions.

The Global Advertising Company has a marginal tax rate of 40%.

The company can raise debt at 8% interest rate.

The last dividend paid by Global was $3. Global's common stock is selling for $40 per share, and its expected growth rate in earnings and dividends is 6%.

Global plans to finance all capital expenditures with 80% debt and 20% equity.

What is the firm's weighted average cost of capital if the firm has sufficient retained earnings to fund the equity portion of its capital budget?

Select one:

a.13.91%

b.15.70%

c.6.63%

d.11.12%

e.9.37%