Baker's Footwear’s common equity has a market value of $512,000. Its cost of common equity is 15%. The market value of its preferred stock is $108,000. Its preferred stock pays a constant dividend of $6 and has a price of $54 a share. The outstanding debt has a total market value of $102,000. The pre-tax yield-to-maturity on the debt is 9.36 percent. What is the firm's weighted average cost of capital if the tax rate is 35 percent? a. 12.34 percent b. 12.41percent c. 12.88 percent d. 13.16 percent e. 13.32 percent