A firm maintains a debt-to-equity ratio of 0.39 and has a tax rate of 26%.The company does not issue preferred stock but has a pre-tax cost of debt of 6.37%.There are 20,000 shares of the company's stock outstanding with a beta of 0.9 and market price of $22.30.Yesterday, the company issued an annual dividend in the amount of $1.45 per share.Dividends are expected to grow at 2.34% indefinitely.What is the company's weighted average cost of capital?

Question 1 options:

7.01%

7.21%

7.40%

7.60%

7.79%