Shallow Drilling, Inc. has $62,850$ shares of common stock outstanding with a beta of $0\mathrm{.}95$ and a market price of $$59\mathrm{.}00$ per share. There are $17,500$ shares of $6\mathrm{.}40\%$ preferred stock outstanding with a stated value of $$100$ per share and a market value of $$75\mathrm{.}00$ per share.The company has $6,380$ bonds outstanding that mature in $15$ years. Each bond has a face value of $$1,000,$ an $8\mathrm{.}60\%$ semiannual coupon rate, and is selling for $96\mathrm{.}20\%$ of par. The market risk premium is $8\mathrm{.}90\%,$ T$-$Bills are yielding $3\mathrm{.}30\%,$ and the tax rate is $25\%.$ What discount rate should the firm apply to a new project's cash flows if the project has the same risk as the company's typical project?