A Firm with a 40 Percent Marginal Tax Rate Has

A firm with a 40 percent marginal tax rate has a capital structure of $60,000,000 in debt and $140,000,000 in equity.What is the firm's weighted cost of capital if the marginal pretax cost of debt is 12 percent, the firm's average pretax cost of debt outstanding is 8%, and the cost of equity is 14.5 percent?

A) 13.75%
B) 11.59%
C) 12.31%
D) 10.45%