1. Boeing Corporation has the outstanding bonds maturing in 25 years and the bonds have a total face value of $750,000, a face value per bond of $1,000, and a market price of $1,011 each. The bonds pay 8 percent interest, semiannually. Also, the firm has 58,000 shares of common stock outstanding at a market price of $36 a share. The common stock just paid a $1.64 annual dividend and has a dividend growth rate of 2.8 percent. There are 12,000 shares of 6 percent preferred stock outstanding at a market price of $51 a share. The preferred stock has a par value of $100. The tax rate is 34 percent. What is the firm's weighted average cost of capital? Show all your work.

A. 7.74%

B. 8.95%

C. 9.19%

D. 10.68%

E. None of the above