Jemisen's firm has expected earnings before interest and taxes of $1,400. Its unlevered cost of capital is 15 percent and its tax rate is 35 percent. The firm has debt with both a book and a face value of $2,000. This debt has a 7 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?
13.51 percent
13.45 percent
13.68 percent
14.36 percent
13.98 percent