Use the information below about AZ product Inc. to answer the question 21-24 -375.000 shares of common stock outstanding at a market price of $30 a share, Next year's annual dividend is expected to be $1.50 a share and the dividend growth rate is 2 percent The company also has 50,000 bonds outstanding that mature in 10 years The bonds make semiannual payments, coupon rate is 7.6%, and currently selling at 98.6 percent of face value (face value is 51.000 per bond). The company's tax rate is 40 percent. What is the company's before tax cost of debt? O A 7.4 8.7.80 5.2 0.9.64