A company has the following capital structure: $10 million from bonds, $25 million from preferred stock, and $150 million from common stock. The cost of each source of funding is as follows: Bonds = 7.00%; Common = 8.75%; Preferred = 5.50%. Compute the company's WACC.

Group of answer choices

0.38%

7.47%

7.09%

8.75%