Given the following information, calculate the weighted average cost of capital.

Percent of capital structure:

Preferred stock................................................... 10%

Common equity................................................. 60

Debt..................................................................... 30

Additional information:

Corporate tax rate............................................................... 34%

Dividend, preferred............................................................. $9.00

Dividend, expected common............................................... $3.50

Price, preferred..................................................................... $102.00

Growth rate.......................................................................... 6%

Bond yield............................................................................. 10%

Flotation cost, preferred...................................................... $3.20

Price, common...................................................................... $70.00