BeeBees capital structure and before tax returns.

Capital Amount Before Tax Return

Common Stock $3,000,000 12.50%

Preferred Stock $3,000,000 9.25%

Debt $4,000,000 5.25%

BeeBees tax rate is 35%.

What is the weighted average cost of capital (WACC) for BeeBees?

A.8.63%

B.6.92%

C.7.89%

D.7.31%

E.5.61%