Grace, Inc is a tea bag manufacturing company. According to their balance sheet, they have total liabilities of $940 and $1,740 of shareholders equity. The firms beta is 1.3, yield to maturity on their bonds is 9%, and its tax rate is 21%. The risk-free rate is 4% and market risk premium is 11%. What is the weighted average cost of capital for Grace, Inc? (Hint: Total liabilities + Shareholders equity = Total Assets) show all work.