From the information below, select the capital structure that results in the lowest WACC for Humungo Sportainment Industries. Rd below is after tax.

a. Debt = 0%; Equity = 100%; Stock Price = $16.00; Rd = 6.60%

b. Debt = 20%; Equity = 80%; Stock Price = $16.25; Rd = 7.00%

c. Debt = 40%; Equity = 60%; Stock Price = $16.50; Rd = 7.60%

d. Debt = 50%; Equity = 50%; Stock Price = $16.75; Rd = 8.40%

e. Debt = 60%; Equity = 40%; Stock Price = $16.00; Rd = 9.40%