ADF Co. is investing in a major capital budgeting project that will require the expenditure of $10 million. The money will be raised by issuing $2 million of bonds, $4 million of preferred stock, and $4 million of new common stock. The company estimates its pre-tax cost of debt to be 7%, its cost of preferred stock to be 8%, the cost of retained earnings to be 12%, and the cost of new common stock to be 14%. ADF's marginal tax rate 21%. The weighted average cost of capital for this project is closest to ?

A. 13.07%

B. 8.74%

C. 11.32%

D. 9.91%