JLP Industries has 6.5 million shares of common stock outstanding with a market price of $14 per share. The company also has outstanding preferred stock with a market value of $10 million, and 25,000 bonds outstanding, each with face value $1,000 and selling at 90% of par value. The cost of equity is 14%, the cost of preferred is 10%, and the cost of debt is 7.25%. If JLP's tax rate is 34%, what is the WACC?

Multiple Choice

9.5%

10.0%

10.8% Incorrect

11.6%

12.0%