Given an Optimal Capital Structure That Is 50% Debt and 50

Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for Stone Corp. given the following additional information: Bond coupon rate………………..8%
Bond yield to maturity…………..6%
Dividend, expected……………..$5
Price, common………………….$80
Growth rate…………………….5%
Corporate tax rate………………30%

A) Less than 5.0%.
B) More than 5.0% and less than 6.25%.
C) More than 6.25% and less than 7.5%.
D) More than 7.5%.