Jackstone Company wants to raise $6 million for investing in a new outlet, which will give a 12% return on its investment. The money will be obtained from the following sources:

Bond A	$ 1,000,000
Bond B	300,000
Common shares	3,000,000
Preferred shares	700,000
Retained earnings	1,000,000
Total	$ 6,000,000

Note: The above includes payment of dividends and issue costs only.

The cost of capital for each source of financing is:

Bond A	10.0%
Bond B	12.5%
Common shares	16.0%
Preferred shares	12.0%
Retained earnings	14.0%
Growth rate	2.0%

What is the companys Weighted Average Cost of Capital? (5 marks)