12. DOZ Telecom is considering a project for the coming year, which will cost $50 million, DQZ plans to use the following combination of debt and equity to finance the investment -Issue 15 million of 20 year bonds at a price of $ 101, with a coupon rate of 8 percent, and floatation costs of 2 percent of par -Use $35 million of funds generated from (retained) earnings The equity market is expected earn 12 percent. U.S. treasury bonds are currently yielding 5 percent. The beta coefficient of DOZ is estimated to be 0.60. DQZ is subject to an effective corporate income tax rate of 40 percent. Assume that after tax cost of debt is 7 percent and the cost of equity is 12 percent. Determine the weighted average cost of capital A. 6.30% B. 9.5% C. 8.5% D. 10.50%