Cromwell's Interiors Is Considering a Project That Is Equally as Risky

Cromwell's Interiors is considering a project that is equally as risky as the firm's current operations.The firm has a cost of equity of 15.4 percent and a pretax cost of debt of 8.9 percent.The debt-equity ratio is .46 and the tax rate is 34 percent.What is the cost of capital for this project?

A) 11.97 percent
B) 12.40 percent
C) 11.02 percent
D) 11.62 percent
E) 12.38 percent