Dr. Piker has a target capital structure of 30% debt, 10% preferred stock, and 60% common equity. He plans to issue bonds with a 6.5% coupon, paid semiannually, a maturity of 10 years, and sell them for $1,000. He also believes that he could sell, at par, $50 preferred stock that pays an 8.5% annual dividend, but flotation costs of 6% would be incurred. He estimates the beta of this project to be 1.5, the risk-free rate is 4%, and the expected return on the market portfolio is 12%. Dr. Piker plans to issue shares of common stock for $35 apiece, with an initial dividend of $3.15 that is expected to show constant growth of 5%. He uses a risk premium of 5.5% when using the bond-yield-plus-risk-premium method to find the cost of equity. His estimated marginal tax rate is 38%. Find WACC