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Novak Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,872,000 on March 1, HK$1,248,000 on June 1, and HK$2,472,000 on December 31. Novak Ltd. had outstanding all year a 8%, 5-year, HK$4,160,000 note payable and an 9%, 4-year, HK$3,640,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, eg. 7.58%) Capitalization rate