Debreu Beverages has an optimal capital structure that is 60% common equity, 21% preferred stock, and 19% debt. Debreu's pretax cost of equity is 9%. Its pretax cost of preferred equity is 7%, and its pretax cost of debt is 7.5%. If the corporate tax rate is 35%, what is the weighted average cost of capital?

options:

7.67%

8.74%

8.04%

7.80%

8.10%

7.69%

5.2%