The yield to maturity on a company's debt is 5.6% per year, the cost of preferred stock financing is 6.2% per year, and the company's cost of equity financing is 10.3% per year. The company's tax rate is 31%. The market value of the debt is $22.3 million, the market value of the preferred stock is $9.2 million, and the market value of the equity is $63.7 million. What is the company's annual weighted average cost of capital? 1) 8.40% 2) 8.81% 3) 8.07% 4) 8.22% O 5) 8.64%

The yield to maturity on a company's debt is 5.6% per year, the cost of preferred stock financing is 6.2% per year, and the company's cost of equity financing is 10.3% per year. The company's tax rate is 31%. The market value of the debt is $22.3 million, the market value of the preferred stock is $9.2 million, and the market value of the equity is $63.7 million. What is the company's annual weighted average cost of capital? 1) 8.40% 2) 8.81% 3) 8.07% 4) 8.22% 5) 8.64%