Suppose that a company has total financing where 30% comes from bonds, 10% from a loan, and 60% from shareholders equity. The bonds pay in average a 7% after-tax interest rate, the loan has a 6% after-tax interest rate, abd shareholders require a 12% return. What is the weighted average cost of capital equal to?

Select One:

a. 3.33%

b. 10.0%

c. 7.33%

d. 9.90%