The yield to maturity on a company's debt is 8.3% per year, the cost of preferred stock financing is 8.8% per year, and the company's cost of equity financing is 14.2% per year. The company's tax rate is 40%. The market value of the debt is $245.1 million, the market value of the preferred stock is $165.7 million, and the market value of the equity is $324.7 million. What is the company's annual weighted average cost of capital? 1) 8.84% 2) 9.27% 3) 10.14% 4) 9.71% 5) 9.91