Clark Communications has a capital structure that consists of 70 percent common stock and 30 percent long-term debt. In order to calculate Clarkss weighted average cost of capital, an analyst has accumulated the following information:

- The company currently has 15-year bonds outstanding with annual coupon payments of 8 percent. The bonds have a face value of $1,000 and sell for $1,075.

- The risk-free rate is 5 percent.

- The market risk premium is 4 percent.

- The beta on Clark's common stock is 1.1.

- The company's retained earnings are sufficient so that they do not have to issue any new

common stock to fund capital projects.

- The company's tax rate is 38 percent.

Given this information, what is Clark's WACC?