Jamestown, Inc. has a target capital structure of 55 percent common stock, 5 percent preferred stock, and 40 percent debt. Its cost of equity is

11.1

percent, the cost of preferred stock is 8.9 percent, and the pretax cost of debt is 8.1 percent. What is the company's WACC if the applicable tax rate is 35 percent?

A.

9.79

percent

B.

8.66

percent

C.

8.21

percent

D.

6.36

percent

E.

7.56

percent