Adams Corporation's outstanding bonds are selling at $ 950. The bonds have a face value of $1000, annual coupon rate of 8.5%, and 10 years until maturity. New bonds will be as risky as the old bonds. However, the firm will incur flotation costs of 10% on new bond issue. Its tax rate is 30%. It can sell new preferred stock at $100 per share with a dividend rate of 11%. However, the firm will incur flotation costs of 15% on new preferred stock. AC's common stock currently sells for $30.00 per share; the next expected dividend per share, Di, is $3.50; and the dividend is expected to grow at a constant rate of 6% per year. AC plans to raise its equity capital by retaining earnings. The target capital structure consists of 30% debt, 10% preferred stock, and 60% common equity.

What is Adams' WACC?