Feast Inc. plans to maintain its optimal capital structure of 40% debt, 10% preferred stock, and 50% common equity indefinitely. The pre-tax required return on each component source of capital is as follows: debt ----- 8%; preferred stock ----- 12%; common equity ----- 16%. Assuming a 25% marginal tax rate, what after-tax weighted average cost of capital can we infer for the firm?

	1.	11.12%
	2.	11.21%
	3.	11.44%
	4.	11.60%