Nendo Electricity has 80,000 bonds outstanding that are selling at RM950. Bonds with similar characteristics are cost of debt 75 percent. The company also has 750.000 shares of 7 percent preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for RM53 a share. The common stock has a beta of 1.34 and sells for RM42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent. The corporate tax rate is 38 percent. Calculate the firm's weighted average cost of capital (8 marks) (CLOZ PL.06.03)