A company you are researching has a common stock with a beta of 1.5. Currently, Treasury Bills yield 3.2%, and the market portfolio offers an expected return of 12.5%. The company finances 35% of its assets with debt that has a yield to maturity of 7%. The firm also uses preferred stock to finance 15% of its assets. The preferred stock has a current price of $10 per share and pays a level $2 dividend. The firm is in the 33% tax bracket. What is the weighted average cost of capital? a.) 13.22% b.) 11.43% c.) 10.94% d.) 14.89%