To help finance a major expansion, AAA Company raised $100 million total capital that consists of $35 million debt, $10 million preferred stock, and $55 million common equity. The interest rate on the debt is 6.50%, the tax rate is 40%, the cost of preferred stock is 6.00%, and the cost of equity is 12.00%. What is AAAs WACC?

A. 8.15%

B. 9.48%

C. 8.57%

D. 8.82%

E. 9.17%