The Banana Corp. An agriculture company needs to find its weighted average cost of capital to analyze an expansion project. The firm is currently financed with debt, preference capital and ordinary equity. The firm faces a company tax rate of 25%. The following information is available.

Debt: The firm currently has 20,000 bonds on issue. The current market value of each bond is $920 the before tax cost of issuing new bonds would be 6% per annum.

Preference Capital: The firm currently issued 500,000 preference shares. The fixed amount of preferred dividends is $4, and the value of each preferred share is $60.

Ordinary Capital: 2,000,000 ordinary shares are currently on issue and the current ordinary share price is $30 per share. The company beta is 1.3, the risk free rate of return is 2% and the market risk premium is 8%.

Given the above information, calculate the weighted average cost of capital for use in analyzing the companys expansion project.