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. 8.25%

b. 9.50%

c. 6.50%

d. 8.94%

e. 10.33%