ABC Corporation is financed 10% with debt, 30% with preferred stock, and 60% with common stock. Its before tax cost of debt is 4.2%, its preferred stock pays an annual dividend of $1.80 and is priced at $25. It has an equity beta of 1.25 Assume the risk-free rate is 2.5%, the market risk premium is 6.8% and ABC Corporation's tax rate is 20%. What is the weighted average cost of capital (WACC) of company ABC?

A 8.20%

B) 9.10%

C) 10.56%

ABC Corporation is financed 10% with debt, 30% with preferred stock, and 60% with common stock. Its before tax cost of debt is 4.2%, its preferred stock pays an annual dividend of $1.80 and is priced at $25. It has an equity beta of 1.25 Assume the risk-free rate is 2.5%, the market risk premium is 6.8% and ABC Corporation's tax rate is 20%. What is the weighted average cost of capital (WACC) of company ABC?

A) 8.20%

B) 9.10%

C) 10.56%

D) 9.02%