Calculate the weighted average cost of capital for KLC, Inc., whose select financial information is provided below:

Current stock price = $130 Beta = 0.8 Number of shares outstanding = 100 million Book value of debt = $5 billion Yield on bonds with risk similar to KLC, Inc. = 4% Tax rate = 25%

Market information: Yield on long-term government bonds = 2% Market risk premium = 7%

Please enter your answer in decimal form, with a minimum of four digits. For example, for 10%, enter 0.1000.