You were hired as a consultant to THE JellyBean Company, and you were provided with the following data: Target capital structure: 30% debt, and 70% common equity. The interest rate on new debt is 7.5%, the cost of retained earnings is 11.50%, and the tax rate is 30%. What is the firms WACC?

a) 9.4%

b) 7.6%

c) 9.63%

d) 8.5%

e) none of these are correct