Pacific Coast Mining Pty Ltd,an Australian Listed Company,has 1 000

Pacific Coast Mining Pty Ltd,an Australian listed company,has 1 000 000 ordinary shares outstanding and the current market price per share is $13.The required rate of return for the ordinary shares is estimated to be 12%.They have issued bonds with a face value of $8 000 000 but the current market value based on a yield to maturity of 7.5% is $7 750 250.If the corporate tax rate is 30% what is the weighted average cost of capital assuming an imputation tax system? Assume all registered shareholders are Australian residents and all dividends are fully franked.

A) 7.22%
B) 10.32%
C) 9.48%
D) 6.83%
E) 9.75%