Targaryen Corporation has a target capital structure of 70 percent of common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 5 percent, and pretax cost of debt is 6 percent. If relevant taxes are 23 percent, what is the firms WACC?

Select one:

a. 9%

b. 8.81%

c. 8%