You are an outside analyst attempting to estimate the cost of capital for Venice Industrial. You do not know the corporation's target capital structure. However, the balance sheet shows a total of $55 million of long term debt with a coupon rate of 8.50%. The yield to maturity is 10.50% (before tax) and the total current market value is $50 million. The balance sheets also show the total of common stock and retained earnings is $70 million. The company's stock has a beta of 1.70 and the stock price is $12.50 per share. There are 12 million shares of stock outstanding, and the current risk free rate is 3.50%. The company recently paid a dividend of $0.75, and they typically pay out about 25% of their earnings in cash dividends. Venice's return on equity is 10% and the expected return on the market is 9.50%. What is your estimate of VI's weighted average cost of capital if their marginal tax rate is 39%? (Be sure to consider all methods for the components costs if there is enough information).