A firm has determined its optimal capital structure, which is composed of the following sources and target market value proportions: Source of Capital Long-term debt Preferred stock Common stock equity Target Market Proportions 30% 5 65 Common Stock: The firm's common stock is currently selling for $40 per share. The dividend expected to be paid at the end of the coming year is $5.07. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.45. It is expected that to sell, a new common stock issue must be underpriced at $3 per share and the firm must pay $2 per share in flotation costs. Additionally, the firm's marginal tax rate is 35 percent. Calculate the firm's weighted average cost of capital assuming the firm has exhausted all retained earnings