3.- Mellon Inc., has common stock of 3 Million shares, at a current price of 50, the Beta of the Stock is 1.2.

Mellon has 100 thousand bonds issued with a coupon rate of 6%, and a current quote of 108, the bonds have 15 years to maturity

Mellon has 150 thousand shares of 5% preferred stock, with a current price of 90 and a par value of 100.

Tax rate is 25%, market risk premium is 7% and risk free rate is 3.75%.

What is the firm's weighted average cost of capital?