As a newly hired financial analyst, your first job at VarsalLife Corp. is to calculate the Company's cost of capital. The present capital structure is as follows;

Market Values

Debt $50 Million

Preferred Stock $50 Million

Common Stock $100 Million

If VarsalLife issues new debt, the bond market expects a yield of 7.5%. Preferred stock is trading for $58, has a $100 par value and pays an annual dividend of 6%. The last dividend for the Common Shares is expected to be $1.40 and growing at 4% per year. The current market price of the common stock is $14.00. The tax rate is 25%, What is the weighted average cost of capital.?