You were hired as a consultant to BedBath Company, whose target capital structure is 45% debt, 20% preferred, and 35% common equity. The after-tax cost of debt is 5.00%, the cost of preferred is 6.00%, and the cost of common equity using retained earnings is 10.14%. The tax rate is 40%. The firm will not be issuing any new stock. What is its WACC?

A.) 7%

B.) 9%

C.) 10%

D.) 11%