In this problem, you first need to calculate the cost of equity using the DCF approach. Then use the rest of the information to find the WACC: Dashy-Paints Corporation has a target capital structure of 45% debt, 15% preferred stock, and 40% common stock. Its before-tax cost of debt is 8%, preferred stock cost is 9.5%, and its marginal tax rate is 40%. The current stock price is $22.00. The last dividend was at 2.25, and is expected to grow at a 5% constant rate. What is the firm's WACC? 11.32% 12.04% 9.88% 8.72%