Royal Estates has 500,000 shares of common stock outstanding at a market price of $47.80 a share. Last month, Royal Estates paid an annual dividend in the amount of $2.10 per share. The dividend growth rate is 5%. Royal Estates also has 20,000 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 6% coupon, pay interest annually, and mature in 20 years. The bonds are selling at 98% of face value. The company's tax rate is 25%. What is Royal Estates's weighted average cost of capital?