Biashara Limited is newly listed company at the Nairobi Securities Exchange. Last year the company had a successful initial public offer (IPO) and raised $10m. The company however requires additional funds for new investment projects already identified. The finance manager is considering raising the additional funds and has the following information:

1. Issue 10% preferred stock of $5m at the market price of $150 per share.
2. Issue debentures of $8m at a market price of $250 per stock debt. The interest to be paid is 10% per annum.
3. The share capital was issued at $100 each with a floatation cost of $20 per share.
4. The expected ordinary dividend is $5 growing annually at a constant rate of 2%.
5. The corporate tax is 40%.

Calculate the expected weighted average cost of capital for Biashara Limited