The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows: Cash and marketable securities Accounts receivable Inventory Current assets Property, plant, and equipment Deferred taxes Other assets Total 2,400 120,900 125,900 249,200 212,900 45,900 88,100 596,100 Short-term debt Accounts payable Current liabilities Long-term debt Shareholders' equity Total 76,500 62,900 139,400 209,500 247,200 596,100 The debt has just been refinanced at an interest rate of 3.75% (short term) and 5.75% (long term). The expected rate of return on the company's shares is 12.75%. There are 7.55 million shares outstanding, and the shares are trading at 55. The tax rate is 25%. Calculate this company's weighed-average cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)