Skolits Corp. has a cost of equity of 10.9 percent and an aftertax cost of debt of 4.2 percent. The company's balance sheet lists long-term debt of $300,000 and equity of $560,000. The company's bonds sell for 95.1 percent of par and the market-to-book ratio is 2.56 times. If the company's tax rate is 21 percent, what is the WACC?

a. 9.64%

b. 9.10%

c. 9.79%

d. 8.56%

e. 10.40%