Assume the market value of JNJ's equity, preffered stock and debt are $25 billion, $5 billion and $10 billion respectively. JNJ has a beta of 0.8, the market risk premium is 6% and the risk-free rate of interest is 4%. JNJ's preferred stock pays a duvidend of $3 each year and trades at a price of $25 per share. JNJ's debt trades with a yield to maturity of 8.5%. what is JNJ's weighted average cost of capital if its tax rate is 35%?

a)8.28%

b)8.38%

c)none of the answers

d)9.13%