Please do not use excel and show your work. A company is financed by stock, bonds and preferred stock. Its target capital structure is 20% bonds, 70% common stock and 10% preferred stock. The companys beta is 1.2. The companys bonds have a coupon interest rate of 4%; their yield to maturity is 6%. The preferred stock is selling to yield 7%. The companys tax rate is 40%. If the risk-free rate of interest is 5% and the expected return on the market is 10%, what is the companys weighted average cost of capital?