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Question 1 (1 point) Jardin Inc. has 500,000 shares of common stock, 120,000 preferred shares, and 25,000 7.5% annual coupon bonds outstanding. The bonds have

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Question 1 (1 point) Jardin Inc. has 500,000 shares of common stock, 120,000 preferred shares, and 25,000 7.5% annual coupon bonds outstanding. The bonds have a par value of $1,000 each, 30 years to maturity and sell for 108% of par. The preferred stock currently trades for $50 each and pays an annual dividend of $4. The common stock currently sells for $32, the last dividend paid was $0.90, and dividends are expected to grow at 9% per year in perpetuity. If the firm's tax rate is 40%, what is the firm's weighted average cost of capital? 07.19% 12.07% O 6.35% 8.70% 9.76%

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