A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firms weighted average cost of capital (WACC). Assume external equity for cost of equity calculation.

r_{d before Tax} = 8% , Tax = 40% , P₀ = $40, Growth = 6% , D₀ = $3.00, Flotation cost = 7% of market price