3. A company has a $90 million par value bond issue outstanding with twelve years to maturity. The bond pays a coupon of 5.75% per year, semiannually, and the issues yield to maturity is 6.3% per year. The companys tax rate is 36%. The company also has a $50 million par value perpetual preferred stock issue outstanding that pays a dividend of 7.5% per year. The yield on the preferred stock is 7.1% per year. The common stock trades for $14.78 per share and there are five million shares outstanding. The risk-free interest rate is 4.2% per year and the stocks beta is 1.3. The stocks last annual dividend was $1.15 per share. The equity risk premium is 6.1% per year. What is the companys weighted average cost of capital?