FAP corporation has 60,000 shares of common stock outstanding at a market price of 46 a share. The common stock just paid a $1.74 annual dividend and has a dividend growth rate of 2.3 percent. There are 15,000 shares of 7 percent preferred stock outstanding at a market price of $61 a share. The preferred stock has a par value of $100. The outstanding bonds mature in 17 years, have a total face value of $750,000, a face value per bond of $1,000, and a market price of $1,033 each. The bonds pay 7 percent interest, annually. The tax rate is 25 percent. What is the firm's weighted average cost of capital?