Question $11$

$10$ pts

Thaler & Co$.$ has the following capital stack: $$500M$ of debt, $$75M$ of preferred equity, and $$225M$ of common equity. If their after$-$tax cost of debt is $4\mathrm{.}9\%,$ their cost of preferred equity is $6\mathrm{.}0\%,$ and their cost of common equity is $15\mathrm{.}1\%,$ what is Thaler's weighted average cost of capital?

$7\mathrm{.}87\%$

$9\mathrm{.}32\%$

$8\mathrm{.}67\%$

$7\mathrm{.}16\%$

$9\mathrm{.}88\%$