Martin Industries (MI) has 10 million common shares outstanding which sell for $30 per share. MI just paid a dividend $3.00 per share, and investors and analysts expect all future dividends to grow by 5% per year, indefinitely. The current risk-free rate is 1.00%, the expected return on the market is 10%, and the stock has a beta of 2.5. MI also has 2 million shares of 7% preferred stock outstanding (par value of $100) selling for $35 per share and 100,000 30-year, 9% annual coupon bonds outstanding, currently selling for 120% of par. If MI is in the 35% tax bracket, then what is the firms WACC?