Salem Corporation has issued 20,000 bonds with a market price $120per 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 firms bonds is 8%

. Required Based on the above information, calculate Salem corporations weighted average cost of capital