It is March 2013 and Apple, Inc. is preparing its first corporate bond offering. Apple, Inc. is planning to issue a total of $100 million face value, 10 year semi-annual coupon bonds. The bonds are expected to be placed at $102 per $100 par value. The coupon rate on the bonds is 4%. At the time, Apple stock was trading at $65 with 6 billion total shares outstanding. Apple's effective tax rate is 25%. The beta of Apple was 1.2, the risk free return was 2% and the average market return was 13%. What is the weighted average cost of capital (WACC) after the bonds are issued? (Carry all intermediate calculations to FOUR decimal points)