A private firm has debt to equity ratio of 25% and tax rate of 35%. Given below is the information of the two publically listed comparable firms called "Black and Decker" and "Fedders" in the same sector in the table below. Tax rate is 35% for all the firms in the Table. The market risk is 5% more than the risk free rate. The risk free rate of return is 3%. Assume Pre-tax cost of debt of the private firm as 4%

Firm Leveraged Beta Debt MV Equity

Black and Decker 1.8 3400 40000

Fedders 1.3 25 250

WHAT IS THE WEIGHTED AVERAGE COST FO CAPITAL