For the Bilbo corporation below.

Debt: 10,000, 5% coupon bonds outstanding, priced at 100% of par value $100, with 15 years to maturity. These bonds pay interest annually.

Preferred Stock: 50,000 shares of preferred stock with a dividend of $5.6 per share. It is currently selling at $80 per share.

Common Stock: 200,000 shares common stock selling for $50 per share. The stock has a beta of 1.1

Market: The expected return on the market is 8%, and the risk-free rate of return is 3%.

tax bracket = 20%

What is the after tax WACC for this company?

Group of answer choices

7.8%

7.867%

6.6867%

6.8%