Ajax, Inc. is expecting to issue new debt at par with a coupon rate of 6%, and to issue new preferred stock with a $2.00 per share dividend at $20 a share. Common stock is currently selling for $25 a share. Ajax expects to pay a dividend of $2.50 per share next year, and a market analysis indicates dividends will grow at a rate of 3% per year. The marginal tax rate is 40%. If Ajax raises capital using a capital structure of 40% debt, 10% preferred stock and 50% common stock, what is the cost of capital for Ajax, Inc.? Please show work. Thanks