Gold Company had net income of $2,990,000 last year. Gold provided the following information on its capital structure:

	Total Amount	Interest Rate
Mortgage bonds	$5,000,000	6%
Unsecured bonds	$10,000,000	8%
Common stock	$20,000,000

The common stock is no more or less risky than other stock and has a premium of 6% above the rate on long-term treasuries (currently 5%). Gold's tax rate is 40%.

1.

Calculate the weighted average cost of capital employed by filling in the following table. (Round all calculations to four significant digits. Enter percent in decimals. For example Enter 34.567% as 0.3457. Use rounded computations in subsequent calculations, if required.).

	Total Dollar Amount	Percent		Weighted Cost
Mortgage bonds	$
Unsecured bonds
Common stock
Total	$

Weighted average cost of capital employed is