Company has the following target capital structure, in market value terms:

Debt 30%

Preferred Stock 10%

Common Stock 60%

In addition, you know the following:

At present the companys debt is composed of $1,000 par bonds issued exactly three years ago, that pay a semiannual coupon, with a nominal annual rate of 7%, that have a ten-year maturity, and that are now selling for $1,150.

The companys preferred stock is paying a $1.50 annual dividend and is currently selling for $97.50 per share.

The companys tax rate is 40%.

The companys common stock has a beta of .80.

The risk-free rate of interest is 3.0%

The market risk premium (MRP) is 5%.

Calculate the weighted average cost of capital for the Floating Cloud Company