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6- Debbie's Donuts has 200,000 shares of common stock outstanding, which have a current market price of $25 a share. This year's annual dividend is

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6- Debbie's Donuts has 200,000 shares of common stock outstanding, which have a current market price of $25 a share. This year's annual dividend is expected to be $3.50 per share, with a growth rate of 2.5%. The firm also has 10,000 bonds outstanding with a yield to maturity of 6%. The bonds have a face value of $1,000 per bond, and are currently selling at 102% of par. If Debbie's donuts has a tax rate of 30%, what is the weighted average cost of capital? (8.36%)

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