You have been provided the following information regarding the Berk Corporation: Bonds have a coupon rate of 6%, payable semi-annually, have 18 years to maturity and are currently selling for $1,090.00. . Preferred stock pays a dividend of $4.50 and the current price is $90.00 per share. Dividends on common stock have enjoyed a 4% annual growth rate and just paid a dividend of $1.75. The current price of the stock is $32.50. The beta of the Berk Corporation is 1.1. the risk free rate is 3%, and the market risk premium is 6%. Berk uses a target capital structure of 30% debt, 10% preferred stock, and 60% common equity and their tax rate is 25%. What is Berk's cost of capital? 8.44% This can't be answered without knowing which method to use to calculate the cost of equity 06.84% O 7.44%