You were hired as a consultant to the ABC Company. You are given the following details about its capital: $7 billion of bank loan outstanding at an effective interest rate of 6.5%, $2 billion of preferred stock with a yield of 6%, and common stock with a market value of $11 billion. Based on your calculation, the shareholder's required rate of return is 11.25%. ABC's tax rate is 40%. What is its WACC? a. 8.15% b. 8.48% c. 8.82% d. 9.17% e. 9.54%