ABC Corporation has the following capital structure:

Debt $35 million

Preferred Stock $20 million

Common Equity (Retained Earnings) $45 million

Yield to maturity = 12%

Tax rate = 40%

After-tax cost of debt = 7.2%

Cost of preferred stock = 8.93%

Next year dividends = $ 4share

Growth Rate = 10%

Current Price = $45/share

Cost of retained earnings = 18.89%

Risk-free rate = 5%

Return the (stock) Market = 12%

Beta = 1.5

Cost of Equity = 15.5%

Calculate the Weighted Average Cost of Debt (WACC). For the cost of retained earnings, please use the cost from Dividend Valuation Model.