MTS, Inc. has 825,000 shares of common stock selling for $39.97 per share. The company is going to pay $2.14 annual dividend next year. The dividend is expected to grow by 1.25 percent per year. The stock has a beta of 0.99. There are also 15,000 shares of 7.00 percent preferred stock selling at $104 per share. Par value is $100. The outstanding bond mature in 11 years. 111,000 shares of bond are quoted at a price of 103.40. The bond pays 6.00 percent interest. Tax rate is 20 percent. Current risk-free rate is 4.10 percent and expected market return is 10 percent. What is the MTS, Inc's weighted average cost of capital?