Assume That XYZ Corporation Is a Leveraged Company with the Following

Assume that XYZ Corporation is a leveraged company with the following information:
K_l = cost of equity capital for XYZ = 13%
i = before-tax borrowing cost = 8%
t = marginal corporate income tax rate = 30%
-If XYZ's debt-to-total-market-value ratio is 40%,then its weighted average cost of capital,K,is: (Do not round intermediate calculations and round your final answer to nearest whole percent)

A) 8%
B) 9%
C) 10%
D) 12%