SupposeJaffeCo.hasthe following financial information:

Debt:75,000 bonds outstanding with a face value of $1,000.The bonds currently trade at 94% of par and have 15 years to maturity.The coupon rate equals 4%, and the bonds make semiannual interest payments.

Preferred stock:400,000 shares of preferred stock outstanding; currently trading for $92 per share and it pays a dividend of $3.33 per share every year.

Common stock:2,500,000 shares of common stock outstanding; currently trading for $54 per share. Beta equals 1.15.

Market and firm information:The expected return on the market is 8%, the risk-free rate is 1%, the tax rate is 21%

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