Johnson Enterprises, is a forklift manufacturer that finances its operations with 38% debt, 7% preferred stock, and 55% common equity. The interest rate on the companys debt is 12%. The preferred stock pays an annual dividend of $2 and sells for $15 a share. The companys common stock trades at $30 a share, and its current dividend (D0) of $2 a share is expected to grow at a constant rate of 9% per year. The flotation cost of common equity is 15% of the dollar amount issued, while the flotation cost on preferred stock is 10%. The companys tax rate is 31%. Assume that the firm will not have enough retained earnings to fund the equity portion of its capital budget. What is the companys WACC?