A company can issue new long-term debt at par ($1,000). The bond matures in twenty years. The bond carries a coupon of 4.5%, coupons paid semiannually. The company expects to pay a dividend of $2.75 next year (i.e., D1=$2.75). The company expects dividends to grow at 4% for the foreseeable future. The company stock closed yesterday at $18.25. The company finances projects with 30% debt and 70% common equity. The company does not use preferred stock. The company is in the 40% tax bracket. What is the weighted average cost of capital (WACC) for the company?