25. [Ch 14] Analysts in Gruber Pharmaceuticals' finance office are updating the firm's weighted average cost of capital for an upcoming capital budgeting project. They have gathered the following data to use in their analysis: " The firm has 52,800,000 shares of stock outstanding. The current price of a share of stock is $27.80. The firm has a single long-term bond issue whose book value on the 10-Q is $800,000,000. The bond trades frequently, with the last trade today at a price quote of 92.524 and a yield of 8.190%. The bonds have 12 years to maturity and were issued at a coupon rate of 7.200% with semi-annual coupons. The firm has taken out a long-term $50,000,000 loan at a fixed rate of 6.900%. The firm faces a combined (federal, state, local) corporate tax rate of 24.8%. The firm's equity beta is 1.45. The firm's preferred risk-free rate and market risk premium are currently 3.800% and 8.520%, respectively. Early today the firm issued its annual dividend $2.52 per share. Your firm has a history of increasing its dividends at a stable rate of 8% per year. Your office cost of equity policy is to use the average if the CAPM and DGM models disagree by 3 percentage points or less. What is the firm's weighted average cost of capital? (Be careful not to overly round intermediate results-retain at least 5 significant digits.) (to nearest 0.001%) %