单选题 Hatch Corporation's target capital structure is 40 percent debt, 50 percent common stock, and 10 percent preferred stock. Information regarding the company's cost of capital can be summarized as follows: The company's bonds have a nominal yield to maturity of 7 percent. The company's preferred stock sells for $ 40 a share and pays an annual dividend of $ 4 a share. The company's common stock sells for $ 25 a share and is expected to pay a dividend of $ 2 a share at the end of the year (i.e. D₁=$2.00). The dividend is expected to grow at a constant rate of 7 percent a year. The company has no retained earnings. The company's tax rate is 40 percent. What is the company's weighted average cost of capital (WACC)?