AB Corporation currently has 40,000 of its 9.5% semi-annual coupon bonds outstanding (Par value = $1,000). The bonds will mature in 20 years and are currently priced at $1,280 per bond. The company has an issue of 1.2 million preferred shares outstanding with a market price of $10.95. The preferred shares offer an annual dividend of $1.05. The companyalso has 2.5 million shares of common stock outstanding with a price of $26.00 per share. The company is expected to pay a $2.50 common dividend one year from today, and that dividend is expected to increase by 5 percent per year forever. The company typically pays flotation costs of 2% of the price on all newly issued securities.

If the company is subject to a 28 percent marginal tax rate, what is the companys after-tax, flotation-cost adjusted weighted average cost of capital

Cost of Debt (in %)

Cost of preferred stock (in %)

Cost of common stock (in %)

WACC (in %)