Fizzy Cola Ltd. produces soft drinks. Shares in the company trade at $10 each and have a Beta of 1.50. The company has 10,000,000 shares on issue. The company also has bonds on issue. The bonds trade at $95 each and there are 500,000 outstanding. The bonds have a yield to maturity of 6%. The market has an expected return of 7%. The risk free rate is 4%. The corporate taxation rate is 30%. What is the weighted average cost of capital (WACC) for Fizzy Cola Ltd.?

Select one:

a. 6.07%

b. 11.23%

c. 15.65%

d. 4.59%

e. 7.12%