Lexington Corporation has a cost of debt of 7.2%, a cost of equity of 14.6%, and a cost of preferred stock of 9.4%. The company has 285,000 shares of common stock outstanding at a market price of $50 a share. There are 15,000 shares of preferred stock outstanding at a market price of $40 a share. The bond issue has a total face value of $16,000,000 and sells at 101% of face value. The tax rate is 25%. What is the weighted average cost of capital for the company? (Hint: use the bond price to calculate the market value of debt)

A.8.96%

B.9.92%

C.9.33%

D.9.71%

E.8.78%