Slico Co. has in issue, 1.5 million shares with a market value of $4 per share. It is expected to pay a dividends of $1.05, which is expected to grow at a rate of 5%. The debt finance of Slico Co. consists of 1,500 $1,000 face value bonds . These bonds pay coupons of 10%. Coupons are paid semi-annually The yield to maturity on these bonds is 8% and bonds mature in 16 years. The company has preferred shares of 0.5 million, which pays a dividend of $0.90 and is currently selling at $6 per share. Slico Co. pays taxation at an annual rate of 25%.

What is the WACC ?