Michael Scott Inc. $($MSI$)$ is a maker of office supplies and paper products. The firm has $750,000$ shares outstanding, currently priced at $$70\mathrm{.}25$ each. MSIs stock has a volatility of $22\mathrm{.}50\%$ and its correlation with market returns is $0\mathrm{.}80.$

The firm also $40,000$ coupon bonds outstanding. These bonds have six years to maturity, a coupon rate of $5\%($paid semi$-$annually$),$ and a YTM of $6\mathrm{.}5\%.$ MSIs average tax rate is $25\%$ while its marginal tax rate is $32\mathrm{.}5\%.$

The expected market risk premium is $6\mathrm{.}25\%$ while the volatility of market returns is $14\mathrm{.}75\%.$ The yield on a ten$-$year Government of Canada bond is $3\mathrm{.}35\%.$

Determine MSIs weighted average cost of capital.