A firm's target capital structure consists of 10% debt and 90% common equity. It's tax rate = 40%; rd = 6.5%; and rs = 9.5%. Assuming that the firm will not be issuing new stock, what is its WACC?

a. 8.94%

b. 10.33%

c. 8.25%

d. 9.50%

e. 6.50%