Hill Enterprises is financed equally with debt and common stock but no preferred stock. The company has outstanding bonds with 10 years to maturity, a 6% annual coupon, par value of $1,000 and 5.6% yield to maturity. In addition, the company pays a marginal tax rate of 25% and its stock has a beta of 1.2. If the risk-free rate is 2% and the return on the market is 8%, what is Hill Enterprises' weighted average cost of capital?