Given the following information for Jano Corp., find the Weighted Average Cost of Capital (WACC). Assume the company's tax rate is 35%.

• Bonds: 10,000 8% coupon bonds outstanding, $1,000 par value, 20 years to maturity, currently selling for $980; the bonds make semi-annual payments
• Common Shares: 300,000 shares outstanding, selling for $50 a share; the beta is 1.25
• Preferred Shares: 25,000 shares of 5% preferred stock outstanding with a $100 par value, currently selling for $75 per share.

The market risk premium is 7% and the prevailing risk-free rate is 3%.