Peter's Audio has two bond issues outstanding. The first issue has a coupon rate of 7 percent, a par value of $2,000 per bond, matures in 20 years, has a total face value of $5 million, and is quoted at 105 percent of face value. The second issue has a coupon rate of 9 percent, a par value of $1,000 per bond, matures in 30 years, has a total face value of $10 million, and is quoted at 110 percent of face value. Both bonds pay interest semiannually. The firm has 105,000 shares of common stock outstanding at a market price of $22 a share with the cost of equity of 10.5 percent. There are 25,000 shares of 2.45%-preferred stock selling for $35 each with a face value of $100. The tax rate is 21 percent.

What is the weighted average cost of capital in percent?