AZ products has 175,000 shares of common stock outstanding at a market price of $52 a share. Next year's annual divident is expected to be $3.85 a share and the divident growth rate is 3.25%. The firm also has 18,000 bonds outstanding with a face value of $1,000 per bond. The bonds have a yield to maturity of 7.65% and sell at 93% of face value. The company's tax rate is 32%. What is the firm's weighted average cost of capital?

0/4 pts Incorrect Question 1 Suppose a company has 15,000 7.5% coupon bonds outstanding. These bonds have 20 years to maturity, and are selling for 96% of par. Each bond has a $1,000 par value and makes semiannual payments. If the tax rate is 32 percent, then the after-tax cost of debt is: 4.80% O 5.37% None of the above 5.15% 4.92%