McKean, Inc

McKean, Inc. 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 12 percent and the after-tax cost of debt is 6 percent. What is
McKean's weighted average cost of capital?

A) 7.3 percent
B) 7.9 percent
C) 8.5 percent
D) 8.7 percent
E) 9.5 percent