Dexter United Has a Debt-Equity Ratio of

Dexter United has a debt-equity ratio of .70 and a tax rate of 34 percent. The firm does not issue preferred stock. The cost of equity is 15 percent and the pre-tax cost of debt is 8.5 percent. What is
Dexter's weighted average cost of capital?

A) 10.57 percent
B) 10.74 percent
C) 11.13 percent
D) 12.32 percent
E) 12.60 percent