Bessners Happytime Hotel is planning to expand its facilities, at an expected cost of $400 million. 15% of these required funds will be raised by issuing new preferred stock, and 25% will be raised by issuing new debt (bonds). Bessners has $150 million available in retained earnings (internal equity) for this project, and the rest will have to be raised by issuing new external equity. Currently, bonds of this quality will have to be issued with 10% interest before tax. Bessners preferred stock will be issued at $50 per share, paying a $2.50 per-share dividend to its buyers, and requiring a $6 flotation cost per share. New common stock can be issued at $24 per share, and is paying an expected dividend of $4 per share this year. Bessner expects the dividend to grow by 7% per year, and flotation costs for this new common stock will be $5 per share. Bessners tax rate is currently 45%.

Required: Organizing your answer clearly, so that your logic and calculation steps can easily be followed, please calculate Bessners Weighted Average Cost of Capital (WACC) that the company can later use to evaluate this expansion project. Your final answer should be in the format x.xx% (i.e., round to two decimal places).