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A firm has 7 0 0 , 0 0 0 shares of common stock outstanding at a market price of $ 4 7 a share.

A firm has 700,000 shares of common stock outstanding at a market price of $47 a share. Last month, the firm paid an annual dividend in the amount of $3 per share. The dividend growth rate is 6%. The company also has 32,000 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 102% of face value. The company's tax rate is 25%. What is the company's weighted average cost of capital (WACC)?
8.48%
8.55%
8.41%
8.34%
8.62%

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