The Five and Dime Store Has a Cost of Equity

The Five and Dime Store has a cost of equity of 15.8 percent,a pretax cost of debt of 7.7 percent,and a tax rate of 35 percent.What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?

A) 10.18 percent
B) 11.72 percent
C) 12.72 percent
D) 13.49 percent
E) 14.93 percent