A firm has the following component costs of capital: Cost of Debt 8.0% Cost of Retained Earnings 11.0% Cost of Preferred Stock 9.0% Its target capital structure is: Debt 30% Retained Earnings 60% Preferred Stock 10%

Estimate the firms Weighted Average Cost of Capital.

Group of answer choices

7.2%

8.5%

9.1%

9.9%

10.5%