The target capital structure of your company is 35% common stock, 50% debt, and 15% preferred stock. The cost of common equity is 16%, the before-tax cost of debt is 10%, and the cost of preferred stock is 8%. Your firm is in the 35% tax bracket. Which of the following is closest to your companys WACC?

8.2%

10.1%

11.5%

12.7%