You were hired as a consultant to Giambono Company, whose target capital structure is $50\%$ debt, $15\%$ preferred, and $35\%$ common equity. The

after$-$tax cost of debt is $6\mathrm{.}00\%,$ the cost of preferred is $7\mathrm{.}50\%,$ and the cost of retained earnings is $13\mathrm{.}75\%.$ The firm will not be issuing any new

stock. What is its WACC?

a$.5\mathrm{.}94\%$

b$.4\mathrm{.}13\%$

c$.7\mathrm{.}81\%$

d$.8\mathrm{.}94\%$

e$.9\mathrm{.}08\%$