A stock analyst obtained the following information about J-Mart, a large drugstore chain:

- The company has non-callable bonds with a remaining maturity of 20 years and a maturity value of

$1,000. The bonds have an annual coupon of 12 percent and are currently selling for $1,273.86.

Over the last four years, the returns in the market and at J-Mart were as follows:

Year	Mercado	J-Mart
1	12,0%	14,5%
2	17,2%	22,2%
3	-3,8%	-7,5%
4	20,0%	24,0%

- The risk-free rate is 6.35 percent and the expected return in the market is 11.35
percent. The business tax rate is 35 percent.
The company anticipates that its proposed investment projects will be financed with 70 percent
debt and 30 percent equity. What is the company's estimated cost of corporate capital (CCC)?