The table below provides the earnings per value for Tyler, Inc over the past several years. With 12 million shares outstanding, the firm's common stock is now (1/1/20) selling for $34.29 per share, and the expected dividends at the end of the current year (2020) is 40% of the 2019 EPS. Because investors expect past trends to continue, g may be based on the earnings growth rate. (note that 6 years of compounded growth are reflected in the data)

Year EPS

2013 .90

2014 1.04

2015 1.21

2016 1.35

2017 1.43

2018 1.58

2019 1.85

The current interest rate on new debt is 6.5%. The firm's marginal tax rate is 35%. The firm's capital structure, considered to be optimal, is 28% debt and 72% common equity. Calculate the weighted average cost of capital (assume that no common stock has to be sold)

A. 12.27%

B. None of the other answers with in 0.2 percent

C. 12.56%

D. 11.93%

E. 13.04%