Murrays is planning a $5 million expansion to its Pittsburgh store. This expansion will be financed, in part, with debt costing 8.00% before taxes. Murrays' marginal tax rate is 35%. Murrays' common stock pays a dividend of $1.20 per share. The current market price is $13.15 per share. Murrays' common stock dividends are expected to increase at an annual rate of 4.00% in the foreseeable future. Preferred stock pays a dividend of $1.00 per share and its current price is $12.00. The project is expected to yield an internal rate of return of 8.57%. Murrays' target capital structure is as follows: Liabilities Assets Current Assets $40 Current Liabilities $25 Fixed Assets 140 + Owner's Equity Preferred Stock 15 Common Stock+Retained Earn. 55 Total Assets $180 Total Liability+ Equity $180 Calculate the weighted average cost of capital for Murrays. 13.49% 10.05% 27.02% 7.63% 8.45%