Company Deano represents a chain of Italian restaurants. The company’s market equity is valued at 60 million, and the market value of its debt is 40 million. Martin, who is Deano’s financial manager, estimates that the required rate of return on the firm’s market equity is 12% and that on the debt is 8%. The tax rate is 30%. Advice Martin as to the company’s WACC:

a. 10.4%

b. 8.16%

c. 9.44%

d. None of the above