Toyota recently hired you to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have a 6% annual coupon, a par value of $1,000, and a market price of $1,050. (2) The company's tax rate is 20%. (3) The risk-free rate is 3.50%, the market risk premium is 5.50%, and the stock's beta is 1.20 (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of common stock. What is its WACC?