Question $21$

$7$ pts

You are analyzing the cost of capital for a firm that is financed with bonds and common equity. Company has $1$ million shares outstanding and shares are trading at $$70$ per share. Company has $100,000$ bonds outstanding and those are trading at $$976$ per bond. Yield to maturity on the bonds is $8\mathrm{.}2\%.$ Cost of equity is $21\mathrm{.}4\%.$ Tax rate is $21\%.$ What is the overall cost of capital for the firm?

Write your answer showing $2$ decimals as for example $14\mathrm{.}25$ when the answer is $14\mathrm{.}25\%.$