A firm has determined its optimal capital structure, which is composed of the following sources and target market value proportions: Debt: The firm can sell a 15 -year, $1,000 par value, 8 percent bond for $970. A flotation cost of 1% of the par value would be required in addition to the discount of $30. Preferred Stock: The firm has determined it can issue preferred stock at $70 per share par value. The stock will pay an $5 annual dividend. The cost of issuing and selling the stock is $2 per share. Common Stock: The firm's common stock is currently selling for $60 per share. The dividend expected to be paid at the end of the coming year is $4. Its dividend payments have been growing at a constant rate of 3% for the last five years. It is expected that to sell, a new common stock issue must be underpriced at $5 per share and the firm must pay $2.5 per share in flotation costs. Additionally, the firm's marginal tax rate is 20%. Calculate the firm's weighted average cost of capital assuming the firm has exhausted all retained earnings