A firm has determined that its optimal capital structure would be composed of 20% in long-term debt, 10% in Preferred Stock, and 70% in Common Stock equity. The firm's marginal tax rate is 21 percent. Compute the firm's weighted average cost of capital based on the following information. Note: Keep six-digitals after decimal points for all cost component calculations for a precise WACC estimation. Long-Term Debt: The firm can sell a 12-year, $1,000 par value, 7% annual coupon bond. A flotation cost of 2% of the face value and a discount of $40 would be required to sell the bond. Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a 10% annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: The firm's common stock is currently valued at $110 per share. A new issue of stock is expected to be sold with a $3 per share discount. Flotation costs are expected to be $2 per share. The most recent dividends were $5.25 per share. Its dividends are expected to grow at a constant rate of 6% per year in the foreseeable future.

Select one:

a. 10.18%

b. 9.98%

c. 10.30%

d. 10.51%