Assume that you have been hired as a consultant by Kruger Industrial Smoothing to estimate their weighted average cost of capital. Kruger's stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 10-year, 7.25% bonds with semiannual payments are selling for $875.00. Their beta is 1.25, the yield on a 10-year Treasury bond is 5.50%. The market risk premium is 6% and their tax rate is 25%. Finally, Kruger's optimal capital structure is 19% debt and 81% equity. What is Kruger's WACC?