Kirk Enterprises has a capital structure of 30 percent common stock, 10 percent preferred stock, and 60 percent debt. The flotation costs are 3.25 percent for debt, 6 percent for preferred stock, and 9.5 percent for common stock. The corporate tax rate is 34 percent. What is the weighted average flotation cost?

Select one:

A. 4.82 percent

B. 6.85 percent

C. 7.20 percent

D. 7.72 percent

E. 5.40 percent