The capital structure of company LM is given below:

Sources of capital Book value ($ 000)

Debts 16,000

Preferred stock 4,000

Common stock 10,000

Ret.earn.re) 20,000

Total capital 50,000

The interest rate for debt is 10%, price of preferred stock is $4 per share, price of common stock is $4.8 per share. Company pays out dividend $1 per share to common stock and $1.1 to the preferred stock. The expected growth rate is 6%, corporate -and income tax rates are 20% and 25% respectively. Calculate and comment the weighted average cost of capital of the firm.