City Rentals has 44,000 shares of common stock outstanding at a market price of $32 a share. The common stock just paid a $1.50 annual dividend and has a dividend growth rate of 2.5 percent. There are 7,500 shares of $9 preferred stock outstanding at a market price of $72 a share. The outstanding bonds mature in 11 years, have a total face value of $825,000, a face value per bond of $1,000, a market price of $989 each, and a pretax yield to maturity of 8.3 percent. The tax rate is 21 percent. What is the firm's weighted average cost of capital? a. 7.76% b. 8.10% c. 9.29% d. 9.97% e. 10.30%