Sorensen Systems Incs common shares are worth $3 million and its debt is worth $2 million. Its cost of equity is 15%. The before-tax cost of debt is 8%, and the tax rate is 40%. Sorensen Systems Inc does not have any preferred shares. What is the companys WACC? Do not round your intermediate calculations. Group of answer choices

9.94%

10.92%

8.72%

8.80%

7.58%