A stock analyst has obtained the following information about J-Mart, a chain that sells merchandise at retail: (1) The company has bonds with 20 years of maturity and a value of $1,000. The bonds have a coupon rate of 12 percent per annum and are currently selling at a price of $1,273.8564 (2) Over the past four years, the returns on the market and on J-Mart shares were the following: Year Market J-Mart 2003 12.0% 14.5% 17.2 2004 22.2 2005 -3.8 -7.5 2006 20.0 24.0 (3) The risk-free rate is 6.35 percent and the expected market rate of return is 11.35 percent. The company has a tax rate of 35 percent. The company anticipates that its investment projects will be financed with 70 percent debt and 30 percent equity. Determine: the WACC of the company