A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. 75% common stock equity and 25% debt.

Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $1,000.

Common Stock: The beta on the company's common stock is 0.8. The expected return of the market is 10% and the current yield on the 10 year Treasury bond is 6%;

Firm's marginal tax rate is 40 percent. What is the WACC for the company?