Tiger Industries can borrow funds at a 7 percent interest rate. Its preferred stock sells for $40 per share and pays an annual dividend of $4 per share. The company has a beta of 1.9, risk-free investments currently pay 4 percent. The company pays taxes at a 40 percent rate. The required rate of return for an average stock is 9 percent. Tiger's Target Capital structure consists of 10 percent preferred stock, 60 percent debt, and all remaining funds comes from common stock. What is Tigers WACC?

a. 3.52%

b. 4.19%

c. 9.85%

d. 7.57%

e. 9.25%