Assume that you are on the financial staff of Rice Inc., and you have collected the following data: The yield on the company's outstanding bonds is 6.8%; its tax rate is 40%; the next expected dividend is $1.40 a share; the dividend is expected to grow at a constant rate of 7.00% a year; the price of the stock is $25.00 per share; the flotation cost for selling new shares is F = 10%; and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget?

Please explain how you arrived to the solution.