Britcoin Ltd. (Britcoin) has $10,000,000 of bonds outstanding with an annual coupon rate of 8.5%. The bond issue matures in three years, and the current yield is 9.75%.

Britcoin has 2,000,000 common shares outstanding with a current market price of $19.85 per share. The common shares have a beta () of 1.15, the expected market return (RM) is 15.5%, and the risk-free rate (RF) is 3.5%.

The $18,000,000 of preferred shares is represented by 300,000 shares of $6 preferred shares.

Britcoins curr ent required rate of return is 11.5%. Britcoin is subject to tax at a rate of25%.

Required:

Calculate the weighted average cost of capital for Britcoin.