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%
		8.90%
		7.07%
		9.38%
		6.71%