Harrelson Brewing Company has 7.3 million shares of common stock outstanding, 220,000 shares of preferred shares outstanding, and 120,000 6.5% semiannual bonds outstanding, par value $1,000 each. The common stock sells for $46 per share and has a beta of 0.95, the preferred stock sells for $91 per share and has a $4.50 dividend, and the bonds have 15 years to maturity and sell for 107% of par. The market risk premium is 7%, T-bill are yielding 3.6%, and the company's tax rate is 35%.

What is the WACC?

a7.28%

b8.31%

c9.21%

d10.72%