Sound Systems has 200 shares of common stock outstanding at a market price of $37 a share. The firm recently paid an annual dividend in the amount of $1.20 per share and has a dividend growth rate of 4 percent. The firm also has 5 bonds outstanding with a face value of $1,000 per bond that are selling at 99 percent of par. The bonds have a coupon rate of 6 percent and a yield to maturity of 6.7 percent. All interest is tax deductible. If the tax rate is 21 percent, what is the weighted average cost of capital? 5.93 percent 6.54 percent 6.87 percent 6.37 percent 7.08 percent