Company OTHER PROJECTS S$.$A$.$ wants to finance the construction of a

seawater desalination unit to meet the water supply needs of a border island. For

this purpose, the company will issue a $5-$year bond to cover $50\%$ of the financing

cost$.$ Currently, the price of a similar $5-$year bond issued by the same company

with an annual coupon rate of $4\%,$ trades in the secondary market at the price of

$99$ for a face value of $100.$ Also, the company will proceed with the issuance

of preferred shares, which will pay a dividend of $0\mathrm{.}6$ annually, priced at $8$ in

the market, to cover $20\%$ of the construction cost. Finally, the remaining cost will

be covered by retained earnings. The company paid the common stockholders a dividend of $0\mathrm{.}8$ last year, and the dividends are expected to increase at a rate of

$3\%$ indefinitely, while the most recent stock price on the stock exchange was $7.$

Calculate the company's weighted average weighted cost of capital. Assume that

the issuance expenses are zero and the company's tax rate is $26\%.$