NiceProducts has 150,000 shares of common stock outstanding at a market price of $30 a share and the dividend growth rate of 2 percent. The next-year dividend is expected to be $1.40. The company also has 3,000 bonds outstanding with a face value of $1,000 per bond. The bonds have a pretax yield of 7 percent and sell at 98 percent of face value. The tax rate is 25 percent. Find the weighted average cost of capital. 4.93% 5.62% 3.86% 6.11% 7.23%