Fantastic firm has a target capital structure that consists of 40% debt, 50% common stock and 10% preferred stock. The firm's common stock recently issued a $4 dividend. Dividends arc expected to grow at a constant rate of 8% forever. The common stock currently trades for $36 per share. The company also has preferred equity which pays a constant annual dividend of $10 and has a current price of $50. In addition, the firm's outstanding bonds have a par value of $1,000, a coupon rate of 10%, 20 years to maturity and arc currently trading for $800. Currently, the risk-free rate is 6% and the required return on the market is 12%. If the firm's beta is 1.75 and its marginal tax rate is 40%, what is the firm's weighted average cost of capital? Use the average rs