Your company is estimating its WACC. Its target capital structure is 35 percent debt, 10 percent preferred stock, and 55 percent common equity. Its bonds have a 10 percent coupon, paid semi-annually, $1000 par value, a current maturity of 8 years, and sell for $950. The firm's preferred stock sell for $75 and pay quarterly dividend of $2. This company's beta is 1.25, the risk-free rate is 4 percent, and the expected market return is 9 percent. The firm's marginal tax rate is 30 percent. What is the WACC of this company? O 12.31% 9.39% 11.86% 6.87% O 7.84%