A company has the following liabilities and equity on its balance sheet:

Current Liab $20M

L-T Debt $40M

Equity $50M

The firm has 2 million shares outstanding with a current market price of $51 per share. In addition, you know that 30-year Treasury securities are yielding 2.7%, the company's debt is rated BBB, which carries a typical default spread of 2.5% . The company's equity has a beta of 1.0, and the market risk premium is 5%. The company has $28M of excess cash on its balance sheet. The company's tax rate is 30%.

What is this company's cost of capital in %, to two decimals? (i.e, if you calculate .12345, enter 12.35)