XYZ Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 30%. The firm will not be issuing any new common stock. What is XYZ's WACC?

9.64%

9.17%

8.87%

8.38%

8.15%