Fake Company Chi's capital structure consists of 35% long-term debt and 65% common equity. Its long-term debt consists of bonds with a coupon rate of 6.5% and a YTM of 5.4%. The company's common stock is currently priced at $42.80 and carries a dividend growing at a constant rate of 1.5%. The most recent dividend paid was $2.80. Taxes are determined based on a 32.0% tax rate.

What is an estimate of this company's weighted average cost of capital?

A) 6.25%

B) 6.58%

C) 6.84%