Given the following information, compute the company's WACC

• current risk-free rate = 1.5%
• average risk-free rate over past 50 years = 4%
• market risk premium = 6%
• Beta = 1.2
• D/V = 30%
• yield to maturity on debt = 9%
• marginal tax rate = 34%
• taxes paid last year = $5 million
• earnings before tax last year = $30 million

a.6.81%

b.7.87%

c.10.03%

d.6.39%

e.8.53%