As a newly hired financial analyst, your first job at VarsalLife Corp. is to calculate the Company's cost of capital. The present capital structure is as follows: Market Values Debt S50 Million Preferred Stock $50 Million Common Stock S100 Million If VarsalLife issues new debt, the bond market expects a yield of 7.5%. Preferred stock is trading for $58, has a $100 par value and pays an annual dividend of 6%. The last dividend for the Common Shares is expected to be $1.40 and growing at 4% per year. The current market price of the common stock is $14.00. The tax rate is 25%, What is the weighted average cost of capital.? O A. 11.20% OB. 11.80% O C. 9.56% OD. 10.95%