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ABC Inc.'s wants to fund a $5 million investment by using its $3 million of retained earnings and borrowing $2 million. ABC Inc.'s common shareholders

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ABC Inc.'s wants to fund a $5 million investment by using its $3 million of retained earnings and borrowing $2 million. ABC Inc.'s common shareholders received a $2 per share dividend last year and analysts predict that dividends will continue to grow at a rate of 4 percent into the foreseeable future. The most recent closing price of ABC Inci's is $87. Furthermore, the firm's chief financial officer has determined that a 15-year maturity bond with a $1,000 face value and 9 percent coupon can be sold to investors for net proceeds of $779. If the ABC Inc.'s tax rate is 24 percent, what is the firm's weighted average cost of capital? O 6.43668% 7.19393% 6.8153% 7.57256 \% 8.32982%

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