Google Microsoft Hybrid, Inc. has a market value of equity of $800 million. It has 50 million common stocks outstanding, which has a beta of 1.25. The market risk premium is 12 percent and the risk-free rate is 3%. The company has 90,000 bonds outstanding, maturing in 20 years. The bonds make semi-annual coupon payments and have $1,000 face value. The coupon rate is 10%. The bonds currently trade for 104% of par. There are 300,000 shares of 9 percent preferred stock outstanding. The firms marginal tax rate is 21 percent. Compute the weighted average cost of capital of the company.

Preferred stock price: $1000