(Calculating the weighted average cost of capital) Brian Logistics Ltd. has a targeted capital structure of 40 percent debt and 50 percent equity, and the remaining 10 percent is in the form of preference shares paying a fixed dividend of 12 percent. The total amount of debt is £8 million, consisting of two separate term loans. The first loan has a balance of £6 million and charges interest at 8 percent. The second term loan has a balance of £2 million charging interest at 10 percent. The corporate tax rate for Brian Logistics is 30 percent. What is their cost of capital?