Given the following information for an industrial company, find its cost of capital (WACC). Assume the companys tax rate is 25 percent. Debt: 18,000 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 95 percent of par; the bonds make annual coupon payments. Common stock: 500,000 shares outstanding, selling for $60 per share; the beta is 1.60. Market: 7 percent market risk premium (i.e., Rm - rf = 7%) and 4.7 percent risk-free rate. 12.03% 12.17% 12.31% 12.45% 12.59%