You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on debt is 6.50%, the yield on the preferred stock is 6.00%, the cost of retained earnings is 14.25%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations.

Question 22 options:

	11.27%
	7.84%
	7.94%
	9.80%
	9.70%