Pascual Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weights: 30% long-term debt, 20% preferred stock, and 50% common stock equity (retained earnings, new common stock, or both). The firm's tax rate is 24%. The firm can sell for P1,000 a 16-year, P1,000-par-value bond paying annual interest at an 8.00% coupon rate. A flotation cost of 4% of the par value is required. 8.50% (annual dividend) preferred stock having a par value of P100 can be sold for P92. An additional fee of P2 per share must be paid to the underwriters. The firm's common stock is currently selling for P80 per share. The stock has paid a dividend that has gradually increased for many years, rising from P2.50 ten years ago to the P4.92 dividend payment, D0D0, that the company just recently made. If the company wants to issue new common stock, it will sell them P3.00 below the current market price to attract investors, and the company will pay P2.50 per share in flotation costs.

Required: Determine the Pascual Labs Weighted Average Cost of Capital