Best Buy has 8.5 million shares of common stock outstanding. The current share price is $65.80, and the book value per share is $7.45. The company recently paid an annual dividend of $3.95 per share and analysts expect dividends to grow at 8 percent per year. Best Buy has a beta of 0.84, the market risk premium if 6.5% and the current 30-­-year T-­-bond yield is 3.7%. The company has two bond issues outstanding. The first bond issue has a face value of $75.4 million, a coupon rate of 3.4 percent, and sells for 90 percent of par. The second issue has a face value of $54.6 million a coupon rate of 6.8 percent, a yield to maturity of 2.253%, and sells for 112 percent of par. The first issue matures in 24 years, the second in 12 years. Assume the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semi-­-annual payments. Assume the cost of equity is a simple average of the cost of equity determined by the dividend growth model and the Capital Asset Pricing Model. The company has a tax rate of 35%. What is the weighted-­-average cost of capital for Best Buy?