As CFO of ABC Company, you are in charge of estimating the companys weighted average cost of capital. The companys target capital structure is 30% debt, 20% preferred stock, and 50% common stock. Its current before-tax cost of debt is 12%, and flotation cost for debt can be ignored. Its preferred stock has an after-tax cost of 12.6%. The company has just paid a dividend (Do) of $3.08 and expects to have a constant dividend growth rate of 8.2%. Its common stock currently sells for $30 per share. Flotation cost on new common stock would total 7.5%. Its tax rate is 40%.

Given the above information, what is the companys overall WACC when newly issued common stock is used as the common equity component? Use the Dividend Growth Model (DGM) to estimate the cost of newly issued common stock. (Hint: Measure the cost of common stock using the DGM and then use the WACC formula with cost of debt, cost of preferred stock, and cost of common stock.)