8. Taylor's Audio Shop has a cost of equity of 10%, a cost of preferred stockof 8% and a cost of debt of 6%. The firm has 104,000 shares of commonstock outstanding at a market price of $20 a share. There are 40,000shares of preferred stock outstanding at a market price of $34 a share.The bond issue has a total face value of$500,000 and sells at 102% offace value. The tax rate is 21%.What is the weighted average cost of capital for Taylor's Audio Shop?
(A) 7.54 percent
(B)8.52 percent
(C)8.63 percent
(D)8.37 percent
(E) 8.76 percent