Aaron's Rentals has 50,000 shares of common stock outstanding at a market price of $48 a share. The company paid $1.6 in dividend last year and expects to increase dividend at 9% a year. The company has a beta of 1.2 and the market return is 11.5%, with risk free rate of 3.5%. The outstanding bonds mature in 10 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 6% coupon. The tax rate is 30 percent. What is the firm's weighted average cost of capital?