The Moons AFL Club Has Raised $80,000 of Long Term

The Moons AFL club has raised $80,000 of long term debt and $120,000 in owners equity capital. The after tax cost of the long term debt is 5% and the club's shareholders expect a 10% return on their investment. What is the club's weighted average cost of capital?

A) 6%
B) 6.5%
C) 7%
D) 7.5%
E) 8%