Sierra Enterprises, a US MNC that manufactures and sells winter sports equipment recently issued bonds to finance a subsidiary in Canada. Their 20-year bonds were issued in US at an interest rate of 9% per year. The 20-year US Treasury Bonds carry an interest rate of 3% percent. The stock market return in the U.S. is expected to be 8% annually. Sierra Enterprises beta is 1.2. The firms target capital structure is 40% debt and 60% equity. They are also subject to a 21% corporate tax rate. Estimate the firms weighted average cost of capital.