What is Bodacious Bodywear's weighted average cost of capital under the following conditions:

- The firm has 30% debt, 10% preferred stock, and 60% equity

- The cost of common equity is 14% and the cost of preferred stock is 9%

- The firm's debt has an after-tax cost of 10% (including flotation costs)

- The firm is in the 40% tax bracket

A) 12.3%

B) 8.5%

C) 10.5%

D) 11.1%