You were hired as a consultant to Keys Company, and you were provided with

the following data: Target capital structure: $32\%$ debt, $10\%$ preferred, and $58\%$

common equity. The after$-$tax cost of debt is $3\mathrm{.}6\%,$ the cost of preferred is $6\mathrm{.}5\%,$

and the cost of retained earnings is $15\%.$ The firm will not be issuing any new

stock. What is the firm's WACC?

$11\mathrm{.}50\%$

$9\mathrm{.}50\%$

$11\mathrm{.}00\%$

$10\mathrm{.}50\%$

$10\mathrm{.}00\%$