King Ltd. requires $35 million to fund the coming year s capital projects. King will finance part of its needs with $21 million in common equity. Its common stock sells for $27 per share. Common share dividends have grown at 8% per year over the last four years and this pattern is expected to continue into the foreseeable future. The last annual dividend, just paid, was $1.125 per share. The rest of the needed funds will come from 10-years, $1,000 face value bonds that have a coupon rate of 11%, payable semi-annually and that can be issued for $1,087. The firm s tax rate is 42%.

Calculate the weighted average cost of capital of the funds to be used to finance the coming year s capital projects. (For intermediate calculations, round the annual component returns for equity and debt, as well as the final WACC to the nearest 0.01%, e.g. round 10.239067% to 10.24).