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You were hired as a consultant to Quigley Company, whose target capital structure is 30% debt, 10% preferred, and 60% common equity. The interest rate on new debt is 7.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 11.75%, and the tax rate is 25%. The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations.

a. 8.74%

b. 9.90%

c. 9.34%

d. 7.79%

e. 7.43%