Use the information to answer the following questions.

The XXX Company has a marginal tax rate of 30%.

The company can issue new bonds at par that would provide a 9% YTM.

The firm's beta is 1.1, the T-bill rate is 5%, and the market return is 11%.

The firm's long-term debt currently sells at par value for $1,500.

The firm has 500 shares of common stock outstanding that sell for $10 per share.

Continued from previous question. What is the firm's weighted average cost of capital?

Select one:

a.10.38%

b.7.51%

c.12.70%

d.13.95%

e.9.90%