Compute the June 20xx Cost of Capital (Rounded to Nearest

Compute the June 20xx cost of capital (rounded to nearest percent) for an investment center with the following information: $\begin{array}{|lr|}\hline \text { Pre-tax operating income for June 20xx } & \$ 17,500,000 \\\text { Assets at June 30, 20xx } & 6,200,000 \\\text { Current liabilities at June 30,20xx } & 4,000,000 \\\text { Long-term liabilities at June 30,20xx } & 1,500,000 \\\text { Income tax expense for June 30,20xx } & 5,000,000 \\\text { EVA } & 12,040,000 \\\hline\end{array}$

A) 8 percent
B) 21 percent
C) 10 percent
D) 14 percent