Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. The face value of each bond is $1,000 each. Bonds with similar characteristics are yielding 8.5 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.3 and sells for $40 a share. The risk-free U.S. Treasury bill is yielding 4 percent and the market risk premium is 8 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital?

Group of answer choices

9.38%

6.29%

10.38%

11.44%

8.48%