Given the following information for an industrial company, find its cost of capital (WACC). Assume the companys tax rate is 35 percent. Debt: 15,000 5.8 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 98 percent of par; the bonds make annual coupon payments. Preferred stock: 120,000 preferred shares outstanding, selling for $60 per share, $4.20 annual dividend per preferred share. Common stock: 450,000 shares outstanding, selling for $70 per share; the beta is 1.20. Market: 7 percent market risk premium (i.e., Rm - rf=7%) and 3.3 percent risk-free rate. 9.09% 8.91% 9.27% 9.45% 8.73%