A firm has the following data: target capital structure of 50% debt and 50% common equity; tax rate = 40%; rd = 7.5%; and rs = 12%. Assume the firm will not be issuing new stock. What is this firm's WACC?

a. 9.5%

b. 12.0%

c. 8.3%

d. 10.0%

e. 7.5%