You Were Hired as a Consultant to Giambono Company,whose Target

You were hired as a consultant to Giambono Company,whose target capital structure is 40% debt,15% preferred,and 45% common equity.The after-tax cost of debt is 6.00%,the cost of preferred is 7.50%,and the cost of retained earnings is 12.00%.The firm will not be issuing any new stock.What is its WACC?

A) 8.93%
B) 7.59%
C) 6.96%
D) 7.68%
E) 6.69%