You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.50%. The firm will not be issuing any new stock. What is its WACC?

	a.	10.98%
	b.	9.15%
	c.	7.59%
	d.	9.88%
	e.	11.16%