Question: Aaron's Rentals has 45,000 shares of common stock outstanding at a market price of $27 a share. The common stock just paid a $1.10 annual dividend and has a growth rate of 3.2 percent. There are 10,000 shares of 5.5 percent preferred stock outstanding at a market price of S48 share. The preferred stock has a par value of s100. The outstanding bonds mature in 11 years, have a total face value of $800,000, a face value per bond of $1,000, and a market price of each. bonds percent interest, semiannually. The tax rate is 35 percent. What is the firm's weighted average cost capital?