Subtle Edge, Inc. presents the following excerpts from its December 31, 2014 balance sheet:

Current Liabilities:
Notes payable, 8%	$ 200,000
Long-Term Liabilities:
Bonds payable, 10%	1,000,000
Shareholders Equity
Common stock, par	50,000
Additional paid-in-capital, common stock	350,000
Total contributed capital	400,000
Retained earnings	250,000
Total shareholders equity	650,000

The accounting department also conveys the following information:

Risk-free rate of return - 3% Risk premium - 4.05% Tax rate 30%

Requirement: Compute Subtle Edges weighted average cost of capital.