A Corp's balance sheet shows $250M in debt, $50M in preferred stock, and $300M in total common equity. The tax rate s 40%. Cost of debt is equal to 6%, cost of preferred stock is equal to 7.5%, and cost of equity is equal to 12%.
If there target capital structure is 30% debt, 5% preferred stock, and 65% common stock, what is the WACC it should use to evaluate future projects?