A Firm Has $50 Million of Common Stock,$10 Million of Preferred

Multiple Choice

A firm has $50 million of common stock,$10 million of preferred stock,and $15 million of debt.The cost of equity is 9%,the cost of preferred stock is 7%,and the pretax cost of debt is 4%.If the firm's tax rate is 25%,what is the firm's WACC?

A) 6.67%
B) 6.33%
C) 7.73%
D) 5.16%
E) 7.53%