A firm maintains a debt-to-equity ratio of 0.65 and has a tax rate of 41%. The company does not issue preferred stock but has a pre-tax cost of debt of 10.00%. There are 20,000 shares of the company's stock outstanding with a beta of 0.9 and market price of $45.30. Yesterday, the company issued an annual dividend in the amount of $1.00 per share. Dividends are expected to grow at 5.94% indefinitely. What is the company's weighted average cost of capital?

6.89%

7.08%

7.26%

7.44%

7.62%