The target capital structure of Company A, Inc. consists of 35% debt and 65% equity. Company A is considered a low-risk firm with a beta of 0.75. The market risk premium is 6.00%. Company As current share price is $70 and the most recent dividend was $3.10. The market expects dividends to grow at 3.00% for the foreseeable future. Company A's only outstanding bond issue has 10 years to maturity, pays semi-annual coupons at 5.00%, has a yield-to-maturity of 5.66%, and sells for 95.00% of par. Government bonds are yielding 3.00%. Company A's tax rate is 35%

1. Calculate Company A's Weighted Average Cost of Capital (WACC)