Horace Corporation's cost of equity is 18 percent, its before-tax cost of debt is 3 percent, and its cost of preferred stock is 6.2 percent. The market value of its equity is $320 million, the market value of its debt is $ 540 million, and the market value of its preferred stock is $100 million. If the tax rate is 34 percent, what is Horace Corporation's weighted average cost of capital WACC?

8.91%

7.76%

8.73%

8.33%