Mike Plc Ltd could borrow funds at 6%. Assume the corporate tax rate of the economy is 25% and 40% of this companys assets financed from debt capital. If the cost of equity is 11.5%, the companys weighted average cost of capital (WACC) would be;

Select one: a. 9.95%

b. 7.83%

c. 8.7%

d. 9%