JH Manufacturing has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year's annual dividend is expected to be $1.54 a share. The dividend growth rate is 5 percent. The firm also has 7,000 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 9 percent coupon, pay interest annually, and mature in 15 years. The bonds are selling at face value. The company's tax rate is 30 percent. What is the firm's weighted average cost of capital? (round answer to whole number with two decimal points: i.e., use 1.23 percent instead of 0.0123)