A company has the following capital structure:

1. Target weightings: 30% debt, 20% preferred stock,50%common equity

2. Tax rate 30%

3. The cost of debt 6.5%

4. Cost of preferred stock is 8%

5. The company's common stock have a value of $40 and a dividend of D₀= $3. The dividend is expected to grow at 6% forever.

Calculate the weighted average cost of capital