1. A company has a $200 million par value bond issue outstanding with fifteen years to maturity. The bond pays a coupon of 7.5% per year, semiannually, and the issues market value is $214.6 million. The company also has a $100 million par value bond issue outstanding with ten years to maturity. That bond pays a coupon of 6.25% per year, semiannually, and the market value is $94.8 million. The companys tax rate is 40%. The common stock trades for $74.43 per share and there are three million shares outstanding. The risk-free interest rate is 4.1% per year and the stocks beta is 1.2. The stocks next annual dividend is expected to be $6.15 per share and the dividend is expected to grow forever at a constant rate of 5.8% per year. What is the companys weighted average cost of capital?