A company has a capital structure that consists of $9 million of debt, $3 million of preferred stock, and $13 million of common equity, based upon current market values. The yield to maturity on its bonds is 7.4%, and investors require 8% return on the company's preferred stock and a 10% return on the common stock. If the tax rate is 35%, what is the weighted average cost of capital (WACC) of this company? O 7.89% 10.49% 12.63% 8.93%