a XXX123 has 66,000 bonds outstanding that are selling at par. The face value of each bond is $1,000. Bonds with similar characteristics have yield to maturity of 7.5 percent. The company also has 600,000 shares of preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $40 a share and pays annual dividends of $4 per share. The common stock has beta of 1.25 and sells for $44 a share. The risk free rate is 3.0 percent and the return on the market is 12 percent. The corporate tax rate is 21 percent. What is the firm's weighted average cost of capital?

Group of answer choices

10.30%

9.96%

13.44%

11.51%

12.36%