Johnson Industries finances its projects with 40 percent debt, 10 percent preferred stock, and 50 percent common stock

* The company can issue bonds at a yield to maturity of 8.4 percent.

* The cost of preferred stock is 9 percent.

The risk free rate is 6.57 percent

the market risk premium is 5%

johnson industry beta is equal to 1.3

company tax rate is 30%

assume the firm will be able to use retained earnings to fund its capital budget

What is the companies Weighted Cost of Capital ?