Locke Company has a target capital structure of 40% debt, 10% preferred stock and 50% common equity. The interest rate on new debt is 8%, the yield on preferred stock is 6%, the cost of retained earnings is 11.5% and the tax rate is 40%. What is the firm's WACC if it doesn't issue new stock? 8.27% 8.15% 8.03% 8.21% 8.09%