Assume that you have been hired as a consultant by Clabber Girl, a major producer of home kitchen goods, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below.

Liabilities and Equity (Reduced for simplicity; shows book-values only)

Long-term debt (40,000 bonds, $1,000 par value)	$40,000,000
Common stock (10,000,000 shares)	$30,000,000

The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 1.70% bonds with semiannual payments that are currently selling for $3,680. The beta is 1.1, the risk free rate is 3.5%. The market has had an average annual return of 14.50% during the past 5 years, and the firm's tax rate is 30%. The firm has no preferred stock.

What is the best estimate of the firm's WACC using market weights?