Green Foods Inc. has a target capital structure that consists of $30\%$ debt, $50\%$ common equity, and $20\%$ preferred stock. The firm has outstanding bonds with a current price of $$926\mathrm{.}40,10$ years to maturity and a $5\%$ coupon. The firm is subject to a $40\%$ tax rate. Green Firm$$s preferred stock pays a constant dividend of $$9$ per year and is currently trading for a price of $$112\mathrm{.}50$ per share. The firm does not plan to issue new common equity; it will retain earnings instead. Management provides you the following information about their common stock: Green Foods Inc. is a mature firm expected to grow at a constant rate of $4\%$ forever. The firm is expected to pay a dividend of $$3$ at year end and its common stock trades at a price of $$60$ per share. The firm$$s beta is $0\mathrm{.}75,$ the risk free$-$rate is $2\%$ and the return on the market is $12\%.$ Also, the firm$$s stock is risky enough that it commands a $3\mathrm{.}1\%$ premium over the bond yield. Estimate Green Foods$$ weighted average cost of capital.

Question $3$ options:

$12\mathrm{.}60\%$

$10\mathrm{.}20\%$

$6\mathrm{.}23\%$

$7\mathrm{.}28\%$