Pfizer Corporation has a cost of debt of 5.8%, a cost of equity of 11.4%, and a cost of preferred stock of 7.6%. The firm has 40,000 shares of common stock outstanding at a market price of $51 a share. There are 8,000 shares of preferred stock outstanding at a market price of $55 a share. The bond issue has a total face value of $3,000,000 and sells at 102% of face value. The tax rate is 25%. What is the weighted average cost of capital for the company?

a.7.20%

b.7.40%

c. 7.60%

d.7.82%

e. 8.02%