Company A has the following capital structure, which it considers to be optimal: Debt Preferred Stock Common Equity from retained earnings Common Equity from issuing new stocks Total Liabilities & Equity $40,000 $20,000 $30,000 $10,000 $100,000 The following information is relevant to Company A: Before-tax cost of debt is 10% The tax rate is 35%. Preferred stock with a dividend of $2 is currently sold to the public at a price of $40 per share. The common stock's last dividend paid was 81 per share, and its common stock currently sells for $45 per share, and dividends are expected to grow at a constant rate of 7%. The company can obtain new capital by selling new common stock to the public with a flotation cost of 5% 5. The weighted average cost of capital (WACC) of Company A is * O a. 9.78% O b.7.41% O c. 11.46% O d. 7.36% O e. None of the above