Phillips Equipment has 100,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.0 percent. The company also has 500,000 shares of 7.0 percent preferred stock and 5.0 million shares of common stock outstanding. The preferred stock sells for $84.00 a share. The common stock has a beta of 1.0 and sells for $55.00 a share. The U.S. Treasury bill is yielding 2.0 percent and the return on the market is 10.0 percent. The corporate tax rate is 35 percent. What is the firm's weighted average cost of capital? 10.04 percent 9.11 percent 7.93 percent 9.43 percent 8.37 percent