Mimi Meow is thinking about expanding to another location which they expect will earn an IRR of 10%. Assume that their capital structure consists of 50% common stock, 20% preferred stock, and 30% debt. Further, analysts predict that their future cost of debt will be 4% and their cost of equity is 13%. We also know that the expected return of preferred stock is 6%. The firm s tax rate is 39%. What is this firm s WACC?

A. 8.43%

B. 8.90%

C. 7.67%

D. 7.15%

E. None of these