Debt: The firm can sell a$15-$year, $$1,000$ par$$ value, $8$ percent bond for$$ $$1,050.$ A flotation cost of $2$ percent of the face value would be required in addition to the premium of$$ $$50.$

Common$$ Stock: A$$ firm's common stock is currently selling for$$ $$75$ per share. The dividend expected to be paid at the end of the coming year is$$ $$5.$ Its dividend payments have been growing at a constant rate for the last five years. Five years$$ ago, the dividend was$$ $$3\mathrm{.}10.$ It is expected that to$$ sell, a new common stock issue must be underpriced$$ $$2$ per share and the firm must pay$$ $$1$ per share in flotation costs.$$ Additionally, the firm has a marginal tax rate of $40$ percent.

Assuming the firm plans to pay out all of its earnings as$$ dividends, the weighted average cost of capital is$\_\_\_\_\_\_\_\_.($See Table$9\mathrm{.}2)$