A firms target capital structure is as follows: 50% debt, 10% preferred stock, and 40% common equity. If the cost of debt is 8%, the cost of preferred stock is 7%, the cost of common equity is 9%, and the firms tax rate is 35%, what is the firms weighted average cost of capital (WACC)?

5.7%

6.9%

8.3%

4.8%

None of the above.