A corporation has 10,000 bonds outstanding with a $1,000 face value, and YTM of 8%. The companys 100,000 shares of preferred stock pay a $4 annual dividend, and sell for $40 per share. The companys 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 12%. Assuming a 40% tax rate, what is the companys WACC?

Select one:

a. 10.87%

b. 7.89%

c. 14.10%

d. 11.52%

e. 5.67%