The Delta Company has issued a total of 75,000,000 shares of common stock at par (its value to the firm is $75,000,000. The dividend yield is 7%. The company also has $25,000,000 of bonds (also sold at par) with a coupon rate of 6%. The tax rate for Alpha is 30%. What is its weighted average cost of capital (WACC)?

Select one:

a. 3.75%

b. 6.00%

c. 6.30%

d. 7.00%