The market value of DRM$\text{'}$s equity, preferred stock and debt are $$8$ million, $$2$ million, and $$11$ million, respectively.

DRM$\text{'}$s equity has a beta of $1\mathrm{.}7,$ the market risk premium is $8\%,$ and the risk $-$ free rate of interest is $3\%.$ DRM$\text{'}$s

preferred stock pays a dividend of $$3\mathrm{.}5$ each year and trades at a price of $$30$ per share. DRM$\text{'}$s debt trades with a

yield to maturity of $8\%.$ What is DRM$\text{'}$s after$-$tax weighted average cost of capital $($WACC$)$ if its tax rate is $25\%?$

The WACC is closest to:

A$.8\mathrm{.}63\%$

B$.11\mathrm{.}11\%$

C$.12\mathrm{.}34\%$

D$.11\mathrm{.}63\%$

E$.10\mathrm{.}58\%$