We assume that Kessis's is a company that is made up of both equity and debt financing. Its equity beta is 1.75. The riskless rate is 2 percent and the market risk premium is 6 percent. Kessis's outstanding bonds have a yield of 5 percent and the corporate tax rate is 20 percent. Kessis's has 1.5 million equity shares outstanding that trade at $14 each. Kessis's outstanding debt consists of 60,000 bonds with a current quote of $105 each. What is Kessis's weighted average cost of capital (WACC)?

	A.	9.74%
	B.	13.87%
	C.	17.75%
	D.	10.54%
	E.	8.05%