Our firm's capital structure based on book values is 45% debt, 5% preferred stock and 50% equity. The firm's before tax cost of debt is 8%, its cost of preferred stock is 9%, its cost of equity is 12%, and its tax rate is 40%. Currently, the market value of debt is $300 million, the market value of preferred stock is $100 million, and the market value of equity is $600 million. What would be the firm's weighted average cost of capital (WACC) based on this information? 8.61% 10.50% 10.05% 9.54% 9.67%