Andy Lau's company has $175 million in debt. It has 30 million shares outstanding and its stock price is $15 per share. Andy could borrow at 6.5%. The risk-free rate is 3% and the market risk premium is 5%. The stock has a beta of 1.4. The applicable tax rate is 38%. What is the weighted average cost of capital? (If your answer is 5.46%, type 5.46. Round your answer to 2 decimal places)