A company has $10 million in long-term outstanding debt, with a yield to maturity of 6%. There are 300,000 shares of common stock with a price per share of $50 and a book value per share of $25. The stock has a beta of 1.2 and the market risk premium is 7%. Calculate the companies cost of capital, if the risk free rate is 4% and the tax rate is 12.5%.