Case Study 15.1 A Publically Traded Company Has Issued $50M Worth of Stocks

Case Study 15.1
A Publically traded company has issued $50M worth of stocks. The stock holders expect a rate of return of 12%. The company has a bank loan at an interest rate of 10% worth $12M. The company has sold bonds worth $20M at a rate of 6% compounded yearly.
-Determine the before tax cost of capital for the company.

A) 10.63%
B) 9.32%
C) 10.24%
D) None of these