PrimaCare has a capital structure that consists of $5 million of debt, $5 million of preferred stock, and $10 million of common equity, based upon current market values. The cost of capital on its bonds is 7.4%, and investors require an 8% return on the firm's preferred and a 14% return on PrimaCare's common stock. If the tax rate is 35%, what is PrimaCare's WACC?

7.21%

8.12%

11.18%

10.20%