ABC is considering an expansion project. ABC has net

debt of $$100,000$ and equity of $$300,000.$ The

expected market risk premium is $7\%$ and the risk free

rate is $3\%.$ If the beta for $AB{C}^{\text{'}}\text{'}$s equity is $1\mathrm{.}50,$ the

return on debt is $6\mathrm{.}25\%$ and the tax rate is $28\%,$ what

is the weighted average cost of capital for ABC $?$

$11\mathrm{.}25\%$

$11\mathrm{.}53\%$

$10\mathrm{.}98\%$

$12\mathrm{.}56\%$