Daniel's Sound Systems has 300,000 shares of common stock outstanding at a market price of $50 a share. Daniel will pay in one year an annual dividend in the amount of $2.567 per share. The dividend growth rate is 5%. Daniel's also has 10,000 bonds outstanding with a par value of $1,000 per bond. The bonds carry a 8% coupon, pay interest semiannually, and mature in 10 years. The bonds are selling at a quoted price of 99.

The company's tax rate is 34%. What is Daniel's weighted average cost of capital?