Alpha Products maintains a target capital structure of 40 percent debt and 60 percent common equity, along with a constant (low) payout ratio of 4.7%, as its equity investors are satisfied with growth in the stock price. To finance its capital budget for next year, the firm will sell $50 million of 11 percent debentures at par and finance the balance of its $125 million capital budget with retained earnings. Next year Alpha expects net income to grow 7% to $30 million, and dividends also are expected to increase 7% and to continue growing at that rate for the foreseeable future. The current market value of Alphas stock is $30. If the firm has a tax rate of 35 percent, what is its weighted cost of capital for the coming year?