QUESTION 10 Buray Corporation, whose target capital structure is 40% debt, 10% preferred, and 50% common equity, is calculating its cost of capital for capital budgeting purposes. Buray has 1.3 Beta, risk free rate is 4% in the market and market risk premium is 5%. The before-tax cost of debt is 8%, and the tax rate is 20%. Its preferred stock has been paying 5$ dividend per year and its current market price is $45. What is the company's WACC if all the equity used is from retained earnings? 8.9% 12.87% 14.34% 6.4%