Aaron's Rentals has capital structure weights of $60\mathrm{.}60\%$ for equity and $39\mathrm{.}40\%$ for bonds. The common stock just paid a $$1\mathrm{.}10$ annual dividend and has a growth rate of $3\mathrm{.}2$ percent. The stock currently trades at $$27$ a share. The outstanding bonds mature in $11$ years, and have a face value per bond of $$1,000,$ and a market price of $$987\mathrm{.}60$ each. The bonds pay $7\mathrm{.}5$ percent interest, semiannually. The tax rate is $35$ percent. Ignore all floatation costs. What is the weighted average cost of capital for the company?

$6\mathrm{.}22\%$

$5\mathrm{.}47\%$

$7\mathrm{.}37\%$

$6\mathrm{.}45\%$