$(10$ Percent$)$ Assume that you are on the financial staff of Vanderheiden Inc., and you have

collected the following data: The yield on the company's outstanding bonds is $8\mathrm{.}0\%,$ its tax rate is

$35\%,$ the next expected dividend is $$0\mathrm{.}70$ a share, the dividend is expected to grow at a constant

rate of $5\mathrm{.}00\%$ a year, the price of the stock is $$27\mathrm{.}50$ per share, the flotation cost for selling new

shares is $F=8\%,$ and the target capital structure is $30\%$ debt and $70\%$ common equity. What is

the firm's WACC, assuming it must issue new stock to finance its capital budget?