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 new debt is $6\mathrm{.}50\%,$ the yield on the preferred is $6\mathrm{.}00\%,$ the cost of retained earnings is $10\mathrm{.}50\%,$ and the tax rate is $25\%.$ 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.

$6\mathrm{.}73\%$

$6\mathrm{.}11\%$

$6\mathrm{.}97\%$

$8\mathrm{.}08\%$

$9\mathrm{.}37\%$