The following is information regarding the capital structure of Wind Industries:

- Capital structure consists of a single long-term debt issue with a face value of $20 million and 2 million common shares with a current market price of $15 per share

- The long-tern debt issue carries a coupon rate of 5% with interest paid semi-annually. It has 8 years remaining until maturity and a current market yield of 6%, also based on semi annual compounding.

- The common shares have a beta of 1.15. Wind industries paid a dividend of $0.95 per share in its most recently completed financial year. Analysts believe these dividends will grow at an average annual rate of 3% for the foreseeable future. The current risk-free interest rate is 2,5%, and the market price of risk is 6%.

- Wind Industries' flotation costs would be 7% before tax on any new issue of common shares and 4% after tax on any new issue of long term debt.

- Corporate tax rate is 32%

What is the company's weighted average cost of capital WACC assuming its cost of common equity will be determined using the capital asset pricing model (CAPM) and it will issue new common shares? Treat the yield on debt as an annual rate for this purpose.