Your firm has issued $1,000,000 par value bonds and the current market price of the bonds is 98%. The firm also has 30,000 common shares outstanding at a price of $35 per share. If the common shares will pay a dividend of $1.50 at the end of the year and thereafter dividends will grow at a rate of 3 percent. If the after-tax yield on a firm's bonds is 6%, what is the firm's weighted average cost of capital?