SCC Inc. has the following financial information:
Current liabilities $900,000
Long-term debt $1,300,000
Total liabilities $2,200,000
Preferred shares $3,500,000
Common equity $6,200,000
The long-term debt consists of a single bond issue paying 6% interest annually. These bonds currently yield 7.5% in the market. The current cost of the preferred shares is 8%. The current cost of the common shares is 12%. The company's tax rate is 40%. What is SCC Inc.'s weighted average cost of capital (rounded to the nearest tenth of apercent)?