The market value of MCO's equity, preferred stock and debt are $7 million, $2 million, and $13 million, respectively. MCO's equity has a beta of 1.9, the market risk premium is 7%, and the risk - free rate of interest is 3%. MCO's preferred stock pays a dividend of $2.5 each year and trades at a price of $27 per share. MCO's debt trades with a yield to maturity of 8.5%. What is MCO's after-tax weighted average cost of capital (WACC) if its tax rate is 25%? The WACC is closest to: *A. 11.76% B. 11.05% C. 9.8% D. 7.98% E. 10.43%