Jemisen's firm has expected earnings before interest and taxes of $1,700. Its unlevered cost of capital is 11 percent and its tax rate is 34 percent. The firm has debt with both a book and a face value of $2,400. This debt has a 6 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?
a. 11.10 percent
b. 10.72 percent
c. 10.25 percent
d. 10.19 percent
e. 10.42 percent