Estimate your firms Weighted Average Cost of Capital. Assume that the current risk-free rate of interest is 3.5%, the market risk premium is 5%, and the corporate tax rate is 21%.

Debt:

Total book value: $10 million, Total market value: $12 million, Coupon rate: 6%, Yield to Maturity: 5%

Common Stock:

Total book value: $15 million, Total market value: $20 million, Beta = 1.1

Preferred Stock:

Total book value: $2 million, Total market value: $2.5 million, Price per share: $20, Dividend per share: $1.50

What is your firms Weighted Average Cost of Capital (input as a raw number)?