An analyst wishes to calculate the WACC for a company. The companys debt is twice that of the equity. The required returns on the companys debt and equity are 8% and 10%, respectively. The companys marginal tax rate is 30%. The WACC is closest to:

Select one:

a. 7.07%

b. 8.67%

c. 6.22%

d. 9.34%