A company's Balance Sheet (in millions) Assets Current Net Fixed Liabilities & Equity $120 $180 Bonds ($1000 Par) Preferred stocks ($100 Par) 50 Common Stock ($1 par 20 Total 130 Total $200 $200 The company's bonds have 9 years to mature, pay 10% coupon rate semi-annually and comparable bonds YTMis 1196. The company's applicable tax rate is 40% The market price of common stock is $12.50 per share The common stock dividend has grown at a steady rate from $0.68 in December 2000 to $1.48 in December 2010. The same growth rate is expected to continue for long time in the future The floatation cost for new common stocks is 15%. The market value of the preferred stock is $75 and it pays quarterly dividend of $1.75 The floatation cost on issuing new preferred stock is 7% Next year is 2011 What is the WACC of the company using the book weights of capital structure (Assuming the company will issue new preferred and common stocks)