The following data pertains to Al$-$Arabi Company:

$$ The targeted debt$-$to$-$equity ratio $($D$/$E$)$ is $0\mathrm{.}5.$

$$ The yield to maturity $($YTM$)$ for bonds is $10\%.$

$$ Al$-$Arabi currently pays dividends of $3.$

$$ Stocks are sold at a price of $31\mathrm{.}50$ per share with a growth rate of $5\%$ and a tax rate of $40\%.$

What is the weighted average cost of capital $($WACC$)$ for Al$-$Arabi Company after tax deduction?

$($a$)12\%($b$)10\mathrm{.}5\%($c$)13\mathrm{.}5\%$