What is the appropriate discount rate to use for a company & project with the following information:

Shareholder's Expected Return: $10\%$

Interest Rate on Bonds: $6\%$

Preferred Share Price $=$ $$100,$ Preferred Share annual dividend $=$ $$5$

Tax rate $=20\%.$

The company applies a $5\%$ additional risk premium to the discount rate for all "high risk" projects. This particular project has been assessed as being "high risk"

The company's mix of funding is $50\%$ equity, $40\%$ debt and $10\%$ preferred shares.

Group of answer choices

$12\mathrm{.}9\%$

$12\mathrm{.}4\%$

$7\mathrm{.}4\%$

$7\mathrm{.}9\%$

$8\mathrm{.}3\%$