Jake's Sound Systems has 210,000 shares of common stock outstanding at a market price of $36 a share. Last month, Jake's paid an annual dividend in the amount of $1.825 per share. The dividend growth rate is 4%. Jake's also has 6,000 bonds outstanding with a face value of $1,000 per bond. The bonds have a YTM of 7% and the bonds are selling at 90% of face value. The company's tax rate is 34%. What is Jake's weighted average cost of capital?

a. 7.21

b 9.27

c. 9.07

d. 7.33