The cost of equity for the Jaclyn Company is 16% and the pre-tax cost of debt is 15%. Forty percent of its capital is in the form of ordinary shares and the other sixty percent consists of debt. The tax rate is 40%. The weighted average cost of capital would be:

(a) 12.5%

(b) 15.4%

(c) 11.8%

(d) 15.5%