A firm has 8,550 common shares outstanding, the shares are trading at $250 and provide a 9% return. The firm also has 14,250 preferred shares outstanding; the preferred shares are trading at $50 and provide a 8% rate of return to investors. In addition, the firm has 2,000 bonds outstanding, the bonds are currently trading at $950 each, and have a YTM of 7%. Given a corporate tax rate of 34%, calculate the firms weighted average cost of capital.

Select one: a. 8.05% b. 7.80% c. 7.10% d. 7.24% e. 6.98%