The market value of debt is $335 million, the market value of preferred stock is $165 million, and the total market value of the firm is $925 million. The cost of equity is 16%, the pretax cost of debt is 12%, the cost of preferred stock is 4.5%, and the tax rate is 34%. What is the WACC (Weighted Average Cost of Capital)? 1) 11.02% O2) 11.64% 3) 10.67% 4) 12.18% 5) 10.81%