ll bean has debt with a market value of 2500000 preferred stock with a market value of 2,500,000 preferred stock with a market vale of $600,000 and common stock with a market value of $5,000,000. if debt has a before-tax cost of 7%, preferred stock at a cost of 8%, common stock at a cost of 10%, and the firm has a tax rate of 35% what is the WACC?
a. 12.57%
b. 9.48%
c. 7.33%
d. 8.17%