Suppose the Widget Company has a capital structure composed of the following, in billions: Debt $40, Common equity $55, Preferred stock $5. The debt rating is of AA. The yield on AA debt is 10%. The marginal tax rate is 35%. The preferred annual dividend is $10, current stock price is $100. If the risk-free rate is 3%, the expected market risk premium is 8%, and the company's stock beta is 1.50. What is Widget's weighted average cost of capital?