AZ Products has 375,000 shares of common stock outstanding at a market price of $32 a share. Next year's annual dividend is expected to be $1.50 a share and the dividend growth rate is 2 percent. The firm also has 7,500 bonds outstanding with a face value of $1,000 per bond. The bonds have annual coupon rate of 7.4 percent, sell at $986 per bond, have ten years until maturity, and pay interest semi-annually. The company's tax rate is 34 percent. What is the firm's weighted average cost of capital?

A. 7.59%

B. 8.52%

C. 6.05%

D. 4.58%

E. 3.41%