Johnson Inc. has $50$ million shares of common stock outstanding, with a current per$-$share price of $$62.$ Johnson just paid out a dividend of $$4\mathrm{.}95$ share for the year just ended, and analysts expect earnings and dividends per share to grow at a constant rate of $2\mathrm{.}75\%$ for the foreseeable future. Assume that Johnson pays dividends once a year.

Johnson Inc. stock is publicly traded, and has an estimated beta of $1\mathrm{.}18.$ The proxy of the risk$-$free rate, the yield on the $10-$year Treasury note, is $4\mathrm{.}5\%$ and the estimated market risk premium is $5\mathrm{.}5\%.$

A survey of institutional investors suggests that investors will likely require a $5\%$ premium over the bond yield in order to be induced to invest in Johnson common stock. $($NOTE: Please do not confuse this $4\%$ premium with the "market risk premium" in the previous paragraph.$)$

Johnson Inc. has $5\%$ coupon bonds outstanding that have a remaining maturity of $15$ years. The bonds pay interest semiannually and are currently trading at $94\%$ of face value. The book value of these bonds stands at $$1\mathrm{.}5$ billion.

The company has perpetual preferred stock outstanding that pays a fixed annual dividend of $$8\mathrm{.}25$ share. Each share has a par value of $$50,$ with a total book value of $$300$ million. The yield on these shares of preferred is $7\mathrm{.}75\%$ currently.

Johnson Inc. faces a marginal tax rate of $35\%.$ Also, management has indicated that it will seek to maintain its existing capital structure if any new funds are raised in the capital markets.

Estimate Johnson Inc.$\text{'}$s weighted average cost of capital $($WACC$).$