Question 8 (1 point) Freedrick just started a new job as a project manager for a company that is expanding into a completely new line of business. He wants to determine an appropriate WACC for an average-risk project in this new division. Freedrick has determined that the target capital structure for the division is 35% debt, 25% preferred stock, and 40% common stock. What is the WACC for the new line of business if the company's cost of debt is 7.5%, its cost of preferred stock is 9.0% and its cost of common stock is 13.5%? The company's marginal tax rate is 35%. 5.40% 10.28% 8.57% 9.36%