WACC: The yield to maturity on a company's debt is 5.7% per year, the cost of preferred stock financing is 6.3% per year, and the company's cost of common equity financing is 10.4% per year. The company's tax rate is 34%. The market value of the debt is $31.4 million, the market value of the preferred stock is $16.8 million, and the market value of common equity is $44.6 million. What is the company's annual weighted average cost of capital? 1) 7.41% 2) 7.74% 3) 6.93% 4) 7.11% 5) 8.12%