8. 8 Our firm's capital structure based on current market values is 45% debt, 5% preferred stock and 50% equity. The firm's before tax cost of debt is 8%, its cost of preferred stock is 9%, its cost of equity is 12%, and its tax rate is 20%. Management believes the target values are 50% debt and 50% equity. What should be the firm's estimated weighted average cost of capital (WACC) based on this information a) 8.40% 9.33% 10.05% 9.20%** 10.00%