Delta Lighting Has 30,000 Shares of Common Stock Outstanding at a Market

Delta Lighting has 30,000 shares of common stock outstanding at a market price of $15.00 a share.This stock was originally issued at $31 per share.The firm also has a bond issue outstanding with a total face value of $280,000 which is selling for 86 percent of par.The cost of equity is 13 percent while the aftertax cost of debt is 6.9 percent.The firm has a beta of 1.48 and a tax rate of 30 percent.What is the weighted average cost of capital?

A) 10.07 percent
B) 10.87 percent
C) 12.36 percent
D) 13.29 percent
E) 13.47 percent