Jakes Sound Systems has 800,000 shares of common stock outstanding at a market price of $40 a share. Jakes annual dividend just paid an amount of $4.00 per share. The dividend growth rate is 2.5%. Jakes also has 10,000 bonds outstanding with a face value of $1,000 per bond. The bonds have a 7.5% coupon rate, pay interest semi-annually, and mature in 20 years. The bonds are selling at 95% of face value. The companys tax rate is 35%. What is Jakes weighted average cost of capital?