You were hired as a consultant to Kroncke Company, whose target capital structure is 50% debt, 11% preferred, and 39% common equity. The after-tax cost of debt is 5.00%, the cost of preferred is 6.50%, and the cost of retained earnings is 14.50%. The firm will not be issuing any new stock. What is its WACC?

A.9.30%

B.8.87%

C.8.15%

D.8.67%