Given the market values and costs of the following sources of financing, calculate the WACC. Assume a tax rate = 25%. There are $120,000 in Long-term bonds (Rd = 6%); there are $40,000 in Preferred Stock (Rp = 9%); and $240,000 in Common Stock (Rs = 15%). Calculate the WACC using market values.

a. 10.00%

b. 10.50%

c. 10.90%

d. 11.10%

e. 11.25%