Wells Fargo WACC. Wells Fargo & Company $($WFC$)$ is capitalized as follows:

Debt of $$219\mathrm{.}5$ B at a $5\mathrm{.}25\%$ annual effective interest rate on its long$-$term bonds $(r_d).$

Preferred Stock of $$19\mathrm{.}5$ B at a $7\mathrm{.}5\%$ annual dividend rate $(r_p).$

Common Stock with a market cap of $$215\mathrm{.}8B.$

The shareholder's $I_s($cost of equity$)$ based on the CAPM is $11\mathrm{.}1\%.$

The effective tax rate is $12\mathrm{.}2\%.$

What is Wells Fargo's after$-$tax WACC?

a$.8\mathrm{.}53\%$

b$.6\mathrm{.}79\%$

c$.5\mathrm{.}46\%$

d$.6\mathrm{.}38\%$

e$.7\mathrm{.}81\%$