Salem Corporation has issued 20,000 bonds with a market price of $120 per bond. Salem Corporation also has 30,000 common shares outstanding at a price of $95 per share. If the common shares will pay a dividend of $3,5 at the end of the year and thereafter dividends will grow at a rate of 4 percent. Given that the after-tax yield on the firm's bonds is 8%. Required: Based on the above information, calculate Salem Corporation's weighted average cost of capital