Assume Dominion Energy is discussing new ways to recapitalize the firm and raise additional capital. The market values of its capital sources are $70.1 billion in equity, $37.9 billion in debt and $2.4 billion in preferred stock . The cost of equity capital is 3.4%, the cost of preferred stock is 3.2%, and the pretax cost of debt is 1.9%. What is the weighted average cost of capital for Dominion Energy if its marginal tax rate is 25%?

Group of answer choices

2.57%

2.88%

3.13%

3.21%

3.34%

2.72%