Jordan Co.'s CFO is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 8.7%. The company currently has $230,000 of debt, and the CFO believes that the book value of the company's debt is a good approximation for the market value of the company's debt.

The firm's cost of preferred stock is 9.9%, and the book value of prferred stock is $16,000

Its cost of equity if 13.2%, and the company currently has $210,000 of common equity on its balance sheet

The CFO has estimated that the firm's market value of preferred stock is $20,000 and the market value of its common equity is $320,000.

Determine Jordan's WACC if it is subject to a tax rate of 40%.

A. 7.24%

B. 9.86%

C. 6.41%

D. 11.34%