A Moving to another question will save this response. 10 points Save Answer AAA's target capital structure is 40% debt, 15% preferred, and 45% common equity. The interest rate on new debt is 5.50%, the yield on the preferred is 6.5%, the cost of retained earnings is 7.25%, and the tax rate is 40%. The firm will not be issuing any new stock. What is the WACC? Do not round your intermediate calculations. a. 6.42% b. 6.35% C. 5.56% d. 4.77% e. 4.97%