Target Corporation has a target capital structure of 78 percent common stock, 5 percent preferred stock, and 17 percent debt. Its cost of equity is 8.8 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 4.6 percent. The relevant tax rate is 21 percent. What is the company's WACC? O A. 6.52% O B. 7.06% O C. 7.68% O D. 7.23% O E. 8.14%

Target Corporation has a target capital structure of 78 percent common stock, 5 percent preferred stock, and 17 percent debt. Its cost of equity is 8.8 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 4.6 percent. The relevant tax rate is 21 percent. What is the company's WACC? A. 6.52% B. 7.06% C. 7.68% D. 7.23% E. 8.14%