A Firm Has $30 Million of Common Stock,$20 Million of Preferred

Multiple Choice

A firm has $30 million of common stock,$20 million of preferred stock,and $40 million of debt.The cost of equity is 8.5%,the cost of preferred stock is 9.5%,and the pretax cost of debt is 7%.If the firm's tax rate is 30%,what is the firm's WACC?

A) 8.33%
B) 6.44%
C) 7.12%
D) 8.06%
E) 7.75%