A firm has three components in its capital structure: debt, preference shares and ordinary shares. The before-tax cost of debt is 4.1%, the before-tax cost of preference shares is 7.5% and the before-tax cost of ordinary shares is 10.5%. The proportion of debt in the capital structure is 14%, the proportion of preference shares is 27% and the proportion of ordinary shares is 59%. The corporate tax rate is 30%. What is the firm's Weighted Average Cost of Capital?

Select one:

a. 8.01%

b. 8.79%

c. 8.62%

d. 6.16%