LL Inc.wants to know what the impact a tax change will have on its WACC.Currently LL INchas the following weights and costs:

Equity:35%and cost of 14%

Preferred STock15%and cost of11%

Debt50%and cost of10%before taxes

Please calculate the new WACC with the tax rate of 20%.

A. 10.55%

B. 9.87%

C. 10.89%

D. 11.25%

E. 12.48%