Bob's is a retail chain of specialty hardware stores. The firm has 25,500 shares of stock outstanding that are currently valued at $80 a share and provide a 11.9 percent rate of return. The firm also has 2,400 bonds outstanding that have a face value of $1,000, a market price of $992, and a 10.5 percent coupon. These bonds mature in 8 years and pay interest semiannually. The tax rate is 12 percent. What is the firm's WACC?

WACC =