1. Faber Corporation has a target capital structure of 35% bond financing, 25% preferred stock financing, and 40% common stock financing. The cost of bonds is 6%, the cost of preferred stock is 12.5%, and the cost of common stock financing is 16.5%. What is Faber's WACC?

   	a.	11.67%
   	b.	9.73%
   	c.	10.94%
   	d.	11.83%