EFG is financed with 40% debt, 40% equity, and 20% preferred stocks. EFG's current dividend for common equity is $4, and it is expected to grow at a rate of 4% each year. The stock price for EFG is $40. EFG has $400 million in retained earnings that can be used as a source of internal equity financing. Any equity capital more than $400 million needs to be sourced with issuance of external equity at net proceeds of $36. EFG can borrow up to $440 million from a local bank at the before-tax rate of 8%. To raise more debt, EFG has to issue a 40 -year subordinated bond with a coupon rate of 8% at net proceeds of $940 per $1,000 face value. EFG's preferred stock pays constant dividend of $4 and is priced at $40 but issuing new preferred stock has a $1 issuance cost. Lastly, EFG's tax rate is 40%. What is EFG's WACC at $1.4 billion financing