A business plons to use $20\%$ dobt, $10\%$ proforred stock, and $70\%$ common stock in its capital budpet. The pretax cost of the compononls are $0\%$ for dobt, $8\%$ for preforred stock, and $14\%$ for common stock The business's tax rate is $20\%$

What is their WACC?

$1244\%$

$104\%$

$902$

$12\mathrm{.}40\%$