Based on current market values, Shawhan Supply 's capital structure is 35% debt, 20% preferred stock, and 45% common stock. The required return on each component is: debt,8% before tax; preferred stock, 11%; and common stock,15%. The marginal tax rate is 35%. What is firm's WACC?

7.64%

12.65%

10.77%

None of them

11.75%