ch.10 question 8

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Plugerville Tourism Co, has a target capital structure of 38% debt and 62% equity, its before-tax cost of debt is estimated to be 6.3% and its marginal tax rate is 20%. The current stock price is 568.00 per share and its last dividend was $3.51 per share. The dividends are expected to grow at a constant rate of 4.2% so the company's cost of common equity is 9.58%. What is the company's weighted average cost of capital (waco? 6.35% 7.074 7.85% 8.184 8.98%