Having public debt constituting 60% of its capital structure. Company XYZ has only one bond traded in the secondary market with a YTM of 12%. What is the WACC for company XYZ? Assume that the marginal tax rate of 30%, risk free-rate (rf) is 3% and market return(rm) is 12%. Beta is 2.4 and Size premium for micro-cap firms is 4.08%.
A. 10.21%
B. 13.56%
C. 11.25%
D. 12.74%
E. 16.51%