Aaron's Rentals has 45,000 shares of common stock outstanding at a market price of $27 a share. The common stock has a beta of .090. The market return is 12% and the risk free rate is 3.0%. There are 10,000 shares of 5.5 percent preferred stock outstanding at a market price of $48 a share. The preferred stock has a par value of $100. The outstanding bonds mature in 11 years, have a total face value of $800,000, a face value per bond of $1,000, and a market price of $987.60 each. The bonds pay 7.5 percent interest, semiannually. The tax rate is 35 percent. What is the firm's weighted average cost of capital?