Fake Company Chi's capital structure consists of 35% long-term debt and 65% common equity. A relatively small company, its long-term debtconsists of a commercial bank loan with a 6.5% interest rate. The company's common stock is currently priced at $87.46 and carries a dividend growing at a constant rate of 2.5%. The most recent dividend paid was $1.80. Taxes are determined based on a 32.0% tax rate.

What is an estimate of this company's weighted average cost of capital?