Quark Inc has 6 million shares of common equity outstanding. The current price of these shares is 55 per share. The shares have a beta of 1.5. The firm also pays dividends of 10 per share on its preference shares, of which 500,000 are outstanding. The current market price of the preference shares is 60 per share. The firms outstanding debt amounts to 8,000,000 with a pre-tax cost of 6.5%. Additionally, treasury bills currently yield 3% and the rate of return on the market is 14%. The company pays tax at 20%. Calculate and interpret the firms weighted average cost of capital?