(2 points) XYZ Industries has 6.5 million shares of common stock outstanding with a market price of $14 per share.The company also has outstanding preferred stock with a market value of $10 million, and 25,000 bonds outstanding, each with face value $1,000 and selling at 90% of par value.The cost of equity is 14%, the cost of preferred is 10%, and the cost of debt is 7.25%.If XYZ's tax rate is 34%, what is the WACC?

A)9.5%

B)10.0%

C)10.8%

D)11.6%

E)12.0%