Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. The bonds yield 8.5 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 3 percent and the market risk premium is 6 percent. Jack's tax rate is 34 percent. What is Jack's weighted average cost of capital?

	5.28 percent
	8.54 percent
	9.26 percent
	8.27 percent
	4.99 percent