A company is currently in this situation: (1) tax rate, T = 21% ; (2) value of debt, D = $1m; (3) before tax rd = 8.0% ; (4) rs = 10.5% ; (5) shares of stock outstanding, n = 100,000; and (6) stock price, P = $88. The firms market is stable and it expects no growth, so all earnings are paid out as dividends. The debt consists of bonds. Compute the WACC.