A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital. rd = 6%, Tax rate = 40%, P0 = $25, Growth = 0%, D0 = $2.00.

Question 16 options:

6.0%

6.2%

7.0%

7.2%

8.0%