Aaron's Rentals has 45,000 shares of common stock outstanding at a market price of $27 a share. The common stock just paid a $2.10 annual dividend and has a growth rate of 4.8 percent. The outstanding bonds mature in 11 years, have a total face value of $800,000, a face value per bond of $1,000, and a market price of $987.60 each. The bonds pay 7.5 percent interest, semiannually. The tax rate is 35 percent. Ignore all floatation costs. What is the weighted average cost of capital for the company?

Question 30 options: 7.23% 9.81% 8.46% 9.58%