Company X has the following capital structure, which is considered to be optimal:

Debt 35%

Preferred stock 25%

Common Equity 40%

Company X tax rate is 30% and investors expect earnings and dividends to grow at a constant rate of 8% in the future. Company X is expected to pay a dividend of $3.40 per share next year, and its stock currently sells at a price of $60 per share.

New capital in the following ways:

New preferred stock with a dividend of $15 can be sold to the public at a price of $105 per share.

Debt can be sold at an interest rate of 10%. Calculate the WACC.