The firm is capital structure is 30% of debts and 70% of equity. The cost of debt beforeTax is 3%, and the cost of equity is 10%. The income tax is 30%. Calculate the WACC.

Select one:

a. WACC=4.5%

b. WACC=7.63%

c. WACC=5.63%

d. WACC=9.3%