ABC Inc. has 25 million shares outstanding trading at $18 per share. Going forward, the market expects ABC to pay an annual dividend of $1.80 per share. ABC also has $150 million in outstanding debt in the form of bonds. These annual bonds have a face value of $1000, a coupon rate of 7%, have 5 years to maturity, and are trading at $1042.12. What is the unlevered cost of capital of ABC? Express your answer in decimals.