A firm has a current stock price of 20 with 8 million shares outstanding and two bond issues outstanding. The two bonds are perpetual and make annual payments. The firm's overall cost of debt is the value-weighted average implied by the two outstanding debt issues. The first bond issue has a face value of 70 million, 10% coupon, and price of 88 percent of par. The second issue has a face value of 40 million, 7% coupon, and price of 78 percent of par. The corporate tax rate is 27%. The risk-free rate is 6 percent. The market return is 15 percent. The firm's equity has a beta of 1.7. What is the cost of capital for the firm