The following information is available for a company:
·Bonds are priced at par and they have an annual coupon rate of 9.2%
·Preferred stock is priced at $8.18 and it pays an annual dividend of $35
·Common equity has a beta of 3
·The risk-free rate is 4% and the market premium is 11%
·Capital structure: Debt = 30%; Preferred stock = 15%; Common equity = 55%
·The tax rate is 35%
The weighted average cost of capital (WACC) for the company is closest to:

A.11.5%

B.13.4%

C.14.3%