B currently has a $400 million market value of debt outstanding. This debt was contracted five years ago at the rate of 4%. B can refinance 60% of the debt at 5% with the remaining 40% refinanced at 6.5%. The company also has an issue of 2 million preference shares outstanding with a market price of $20 per share. The preference shares offer an annual dividend of $1.5 per share. B also has 14 million ordinary shares outstanding with a price of $30.00 per share. B just paid a $1.2 ordinary dividend, and that dividend is expected to increase by 5 per cent per year forever. If the corporate tax rate is 40 per cent, calculate Bs weighted average cost of capital (WACC).