Calculate the weighted cost of capital from the information below.

Asset

Value

Bonds at7% coupon

$300,000

Preferred stock with $5 dividend

$240,000

Common stock

$360,000

Retained earnings

$300,000

$1,200,000

Floating cost

10%

Dividend on common stock

$3

Expected growth rate of dividend on common stock

6%

Market price of common stock

$40

Market price of preferred stock

$50

Interests on bond paid annually

Bonds are selling at par

Tax rate

40%

The cost of retained earnings is

13.95%

The cost of new common stock is

14.83%

After-tax cost of debt is

Cost of preferred stock is

Weighted average cost of capital = ?