The corporation has a capital structure consisting of 40% debt and 60% common equity. The financial managers of the company believe that these spital proportions represent the companys target capital structure. If the company were to issue new debt, it expects this debt will yield 8%. Current;y, its stick is trading at 20$ per share, the most recent dividend is $1 per share, and financial managers believe that this dividend will grow at a rate of 6% per year. Themargina; corporate tax bracket is 35%. The companys weighted average cost of capital is closest to:

• 8.250%

• 8.860%

• 6.487%