KB Corp. has 5.1 million shares of common stock outstanding, 379,000 shares of 3.5 percent preferred stock outstanding and 120,000 4.2 percent semiannual bonds outstanding, par value of $1,000 each. The common stock currently sells for $34 per share and has a beta of 1.05, the preferred stock currently sells for $88 per share, and the bonds have 20-years to maturity and sell for 103 percent of par. The market risk premium is 6 percent, T-bills are yielding 1 .6 percent, and the companys tax rate is 35 percent. What is the WACC?

		7.90%
		3.5%
		7.34%
		5.51%
		4.45%