Avicorp has a $10.0 million debt issue outstanding, with a 6.0% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in three years. It is currently priced at 90% of par value. At the same time, the market values of Avicorp's equity and preferred stock are $6 million and $4 million respectively. Avicorp has a beta of 1.4, the market risk premium is 6% and the risk-free rate of interest is 4%. Avicorp's preferred stock pays a dividend of $3 each year and trades at a price of $25 per share. What is Ford's weighted average cost of capital if its tax rate is 35%? Note: For the Avicorp's pre-tax cost of debt, compute the effective annual return.