Assume the market value of Sysco's equity, preferred stock and debt are $6 billion, $3 billion, and $13 billion, respectively. Sysco has a beta of 1.7, the market risk premium is 8%, and the risk-free rate of interest is 3%. Sysco's preferred stock pays a dividend of $2.50 each year and trades at a price of $30 per share. Sysco's debt trades with a yield to maturity of 9.5%. What is Sysco's weighted average cost of capital if its tax rate is 35%?

9.78%

10.24%

9.31%

11.18%