Manufacturing Ltd. wants to determine their WACC. Their 9% semi-annual bonds (par value $1,000) are selling for $1,154.05 with 8 years still remaining until maturity. The company has 10,000 bonds currently on issue. The finance manager has calculated the (before tax) yield to maturity (YTM) of the bonds to be 6.5%. The preference shares which were originally issued at $2.00 per share, pay a dividend of $0.20 per share.They are currently selling in the market at a price of $1.40. There are 2 million preference shares outstanding. The firm also has 5 million ordinary shares on issue which have a current market price of $4.50 each. Assume that the current risk-free rate is 5% and the return on market portfolio is 8%. WM has a beta which has been recently estimated at 1.2. The tax rate is 30%. Calculate M's weighted average cost of capital.