A firm has the following capital structure. The corporate tax rate is 21%. Determine the after-tax weighted average cost of capital for the firm.

Type	Amount	Return	Weight
Mortgages (debt)	25,000,000	0.05	0.053
Bonds	200,000,000	0.08	0.213
Common Stock	175,000,000	0.1	0.372
Preferred Stock	50,000,000	0.08	0.106
Retained Earnings	120,000,000	0.12	0.255

Group of answer choices

1. 7.59%

2. 9.19%

3. 9.61%

4. 5.17%

Please show workings. thank you