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Consider the following capital structure for Sea ShoreCorporation. The company has a publicly-traded bond issue,preferred shares, and common equity in its capital structure. Thefirm’s tax rate is 35%. The risk-free rate is 7%.Details on the components of the capital structure are listedbelow.Debt:Fixed coupon-paying bond issue$80 million par6% semiannual couponRemaining maturity of 10 yearsCurrently priced in market at 105% of par valuePreferred equity:$100 million par6% annual couponEach $1,000 par issue is currently priced at $925.Common equity:10 million shares outstandingCurrent share price: $40Stock beta: 0.5Market risk premium = 10%Sea Shore’s weighted average cost of capital (wacc) isclosest to:A) 7.62%B) 8.51%C) 9.87%D) 10.14%