You are an outside analyst attempting to estimate the cost of capital for the Jaguar Corporation. You do not know the corporations target capital structure. However, the balance sheet shows a total of $72 million of long term debt with a coupon rate of 7.5%. The yield to maturity is 9% (before tax) and the total current market value is $63 million. The balance sheet also shows the total of common stock and retained earnings is $35 million. The companys stock price is $16.50 per share. There are 10 million shares of stock outstanding, and the current risk free rate is 4%. The company typically pays out about 20% of their earnings in cash dividends. The dividend yield on the market is 1.90% and analysts expect market growth of 8% indefinitely. The company has a beta of 1.7. What is your estimate of their weighted average cost of capital if their marginal tax rate is 29%?

(The WACC should equal to 12.10%)