Tetrarch Corp finances itself with 50% debt and 5% preferred equity, with the remainder coming from common equity. Its pre-tax cost of debt is estimated to be 8%, its marginal cost of preferred equity is estimated to be 10%, and its marginal cost of common equity is estimated to be 12%. Its marginal tax rate is 25%. Based on this information, Tetrarchs weighted average cost of capital is estimated to be: 9.80% 9.50% 8.70% 9.20%