Company A has 10,000 bonds outstanding. The bonds are selling at 101% of face value, have an 8% coupon rate, pay interest quarterly, and mature in 9 years. There are 500,000 shares of preferred stock outstanding with a market price of $91 a share. The required rate of return on the preferred stock is 12%. In addition, there are 1.05 million shares of common stock outstanding with a market price of $57 a share and a beta of 0.97. The common stock paid a total of $1.20 in dividends last year and expects to increase those dividends by 3% annually. The firm's marginal tax rate is 32%. What is the firms weighted average cost of capital (WACC)?

A) 3.45%

B) 5.33%

C) 7.88%

D) 8.56%

E) 9.21%