The AirMax Company has a cost of equity of 12 percent, a pre-tax cost of debt of 7 percent, and a tax rate of 30 percent. What is the firm's weighted average cost of capital if the debt ratio is 40%.

	a.	7.20 percent
	b.	10.00 percent
	c.	10.01 percent
	d.	9.16 percent
	e.	12.00 percent