Petrus Corp finances itself with 5% preferred equity, 50% common equity, and the remainder from debt. Its pre-tax cost of debt is estimated to be 8%, its marginal cost of preferred equity is estimated to be 10%, and its marginal cost of common equity is estimated to be 12%. Its marginal tax rate is 30%. Based on this information, Petruss weighted average cost of capital is estimated to be: 9.02% 6.71% 8.90% 9.38% 7.07%