Consider the following information about Johnny's Apple Company and answer the question below:

Tax Rate = 40%

Target capital structure = 40% debt, 15% preferred, and 45% common equity

Before - Tax cost of debt = 10.00%,

Cost of preferred is 7.50%,

Cost of common using reinvested earnings = 12.75%.

The firm will not be issuing any new stock.

What is Johnny's WACC?

Group of answer choices

8.98%

9.54%

9.26%

9.83%

10.12%