QUESTION 19 Bob's Mill Co. has 80,000 bonds outstanding that are selling at face value of $1,000. Bonds with similar characteristics are yielding 8.5%. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4% and the market risk premium is 8%. Bob's tax rate is 35%. What is Bob's weighted average cost of capital? CA. 11.37% 10.65% B. C.7.39% D 7.10% E. 10,38%