Jake's Sound Systems Has 210,000 Shares of Common Stock Outstanding

Jake's Sound Systems has 210,000 shares of common stock outstanding at a market price of $36 a share. Last month, Jake's paid an annual dividend in the amount of $1.593 per share. The dividend growth rate is 4 %. Jake's also has 6,000 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 7 % coupon, pay interest annually, and mature in 4.89 years. The bonds are selling at 99 % of face value. The company's tax rate is 34 %. What is Jake's weighted average cost of capital?

A) 5.3 %
B) 5.8 %
C) 6.3 %
D) 6.9 %
E) 7.2 %