Given the following information for Just & Fair Incorporation, calculate WAAC:

Debt: 75,000 9% coupon bonds outstanding , $1,000par value 15years to maturity, selling for 96% of par , the bonds make annual payments.

Ordinary Shares: 195,000 shares outstanding, selling for $2.5 per share; beta is 0.95

Preference Shares: 50,000 shares of 3.5% preferred stock outstanding ,currently selling for $3 per share.

Market: 8% expected return on the market and 3% risk-free rate. Corporate tax rate is 25%.