Assume that you are on the financial staff of Staken Enterprises, and you have collected the following data:(1) The yield to maturity on the company's outstanding 5.5% annual coupon bonds is 4%, and its tax rate is 25%.(2) The risk-free rate is 3.00%, the market risk premium (r_M - r_RF) is 6%, and the firm's beta is 0.75.(3) The firm's capital structure consists of 40% debt and 60% equity. What is Wolken's WACC?

a.5.10%

b.5.48%

c.5.70%

d.6.15%

e.7.50%