XYZ Corporation has issued a bond with YTM of 6 percent. The beta of the shares is 0.8. The tax rate is 20 percent. The risk-free rate is 4 percent and market risk premium is 6 percent. Target debt ratio is 30 percent. The weighted average cost of capital is

7.6 percent

7.2 percent

8.0 percent

7.8 percent

None of the listed choices