Consider the Following: the Market Value of Emma Stock Is

Consider the following: the market value of Emma stock is $40 a share (with 2,000,000 shares outstanding and the next annual dividend is expected to be $3.50) ,the bonds are currently selling for $1080 (semi-annual coupon payments of $25; maturing in 20 years; 10,000 bonds in the market) ,the preferred stock currently is $40 per share (paying dividends of $3 in perpetuity,100,000 shares outstanding) ; if the tax rate is 40%,what is the firm's WACC?

A) 8.20%
B) 6.88%
C) 8.00%
D) 8.75%