Calculate WACC given the following information (BT means before tax).

Total Value of Common Stocks (S)	$600,000	Cost of Equity (common stocks, Ks)	16%
Total Value of Preferred Stocks (P)	$200,000	Cost of Preferred stock (Kp)	10%
Total Value of Debt (D)	$500,000	Before Tax Cost of Debt (BT Kd)	7%
		Tax rate (T)	40%

Group of answer choices

10.54%

12.65%

19.29%

8.43%