The Required Return on Assets Is 18 Percent

The required return on assets is 18 percent.The firm can borrow at 12.5 percent; firm's target debt to value ratio is 3/5.The corporate tax rate is 34 percent,and the risk-free rate is 4 percent and the market risk premium is 9.2 percent. What is the weighted average cost of capital?

A) 12.15 percent
B) 13.02 percent
C) 14.33 percent
D) 23.45 percent