Malak Corporation, a major hardware manufacturer, is contemplating selling $20 million worth of 20 -year, 9% coupon bonds with a par value of $1,000. Because current market interest rates are greater than 9%, the firm must sell the bonds at $980. Flotation costs are 2%. Malak Corporation has a 40% tax rate. Malak Corporation is contemplating the issuance of a 10% preferred stock that is expected to sell for its $87-per share value. The cost of issuing and selling the stock is expected to be $5 per share. The firm's investment advisors and its own analysts indicate that the risk-free rate, RF, equals 9%; the firm's beta, b, equals 1.5; and the market return, rm, equals 13%. The company uses the following weights in calculating its weighted average cost of capital: Long-term debt =35.5% Preferred stock =8.5% Common stock equity =56% Calculate the weighted average cost of capital for Malak Corporation