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Sound Systems (SS) has 200, 000 shares of common stock outstanding at a market price...

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Accounting

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Sound Systems (SS) has 200, 000 shares of common stock outstanding at a market price of $37 a share. SS recently paid an annual dividend in the amount of $1.20 per share. The dividend growth rate is 4 percent SS also has 4.500 bonds outstanding with a face value of $1, 000 per bond that are selling at 99 percent of par. The bonds have a 6 percent coupon and a 67 percent yield to maturity. If the tax rate 34 percent, what is the weighted average cost of capital? 5.87% 7.28% 6.26% 5.33% 6.49%

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