You are hired as a consultant to GGG Company whose target capital structure is 40% debt, 15% preferred and 45% common equity. The after-tax cost of debt is 6%, the cost of PFD is 7.50% and the cost of retained earnings is 12.75%. The firm will not be issuing any more stock. What is its WACC?

8.98%

9.26%

9.54%

9.83%

10.12%

None of the above