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ution 2 1 points Save An Your firm has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year's

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ution 2 1 points Save An Your firm has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year's annual dividend is expected to be $155 a share. The dividend growth rate is 2 percent. The firm also has 7.500 bonds outstanding with a face value of $1.000 per bond. The bonds carry a7 percent coupon, pay interest semiannually, and mature in 75 years. The bonds are selling at 98 percent of face value. The company's tax rate is 10 percent. What is the firm's weighted average cost of capita 6.7 percent 62 percent 7.1 percent 85 percent 9.6 percent

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