A firm has $8 billion of common stock and $14 billion of debt. The cost of equity is 7.5%, and the pretax cost of debt is 3.8%. If the firm's tax rate is 30%, what is the firm's WACC?

Question 1 options:

a)

4.84%

b)

3.6%

c)

5.15%

d)

5.65%

e)

4.42%