What would be the weighted average cost of capital for LamBakery, Inc. under the following conditions:

*The capital structure is 40% debt and 60% equity

*The before-tax cost of debt (which includes flotation costs) is 20% and the firm is in the 40% tax bracket

*The firm's beta is 1.7

*The risk-free rate is 7% and the market risk premium is 6%

Group of answer choices

15.12%

18.7%

17.2%

12%