You were hired as a consultant to Keys Company, and you were provided with the following data: Target capital structure: 48% debt, 11% preferred, and 41% common equity. The after-tax cost of debt is 4.3%, the cost of preferred is 7.9%, and the cost of retained earnings is 10.4%. The firm will not be issuing any new stock. What is the firm's WACC?

O 7.20%

7.80%

7.60%

8.00%

7.40%