Suppose Westerfield Co. has the following financial information:

Debt: 80,000 bonds outstanding with a face value of $1,000. The bonds currently trade at 96% of par and have 30 years to maturity. The coupon rate equals 3%, and the bonds make semi-annual interest payments.

Preferred stock: 100,000 shares of preferred stock outstanding; currently trading for $98 per share and it pays a dividend of $4.25 per share every year.

Common stock: 2,500,000 shares of common stock outstanding; currently trading for $55 per share. Beta equals 1.3.

Market and firm information: The expected return on the market is 12%, the risk-free rate is 2%, the tax rate is 21%

Calculate the weighted average cost of capital. (Enter percentages as decimals and round to 4 decimals)