Company AZ has 100,000 shares of common stock outstanding at a price of $20 a share. The company's equity beta is 1.2. There are also $1.5 million bonds outstanding that has a coupon rate of 8 percent and yield of maturity of 10%. The bonds mature in 14 years, pay interest semiannually. What is the company's weighted average cost of capital? Assuming the Treasury Bill's yield is 3% and the market return is 8%, corporate tax rate is 40%. 9.77% 7.71% 7.2%