Samsung Inc. hired you as a consultant to help estimate its cost of capital (WACC). You have been provided with the following data:

1. Samsung currently has one type of bond outstanding.The bond is a 20 year bond and is making quarterly coupon payment.It was issued 5 years ago at par with a total face value of $100 million and is carrying a 6% coupon rate at issuance.Each bond is currently trading above par at $1075.

2. A typical saving account at a bank is offering an interest rate of 0.5%, GIC is currently offering a return of 1.5% and a 25-year Government of Canada bond is currently yielding at 4.0%.

3. The beta of Samsung's stock is 0.8 and the market risk premium of the Korea Composite StockPriceIndexis 4.5%.

4. There is currently 13 million shares of Samsung stock trading publicly on the Korean stock exchange.Samsung just paid a dividend of $1.8 per share and the dividend is expected to grow at a constant rate of 3% forever.Theactualreturn of the stock as at today is 12%.

5. The tax rate associated with Samsung Inc. is 30%.

What is the WACC of Samsung Inc.?