A firm has 600,000 shares of common stock outstanding at a market price of $60 a share. Last month, the firm paid an annual dividend in the amount of $2.80 per share. The dividend growth rate is 6%. The company also has 30,000 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 6% coupon, pay interest annually, and mature in 10 years. The bonds are selling at 98% of face value. The company's tax rate is 25%. What is the company's weighted average cost of capital (WACC)?

8.34%

8.14%

7.94%

7.74%

8.54%