TJK Inc. wants to calculate its weighted average cost of capital (WACC). The companys CFO has collected the following information:

• The companys long-term bonds currently offer a yield to maturity of 12 percent.
• The companys stock price is $132 per share (P₀ = $132).
• The company recently paid a dividend of $5 per share (D₀ = $5.00).
• The dividend is expected to grow at a constant rate of 6 percent a year (g = 8%).
• The company pays a 10 percent flotation cost whenever it issues new common stock (F = 10%).
• The companys target capital structure is 55 percent equity and 45 percent debt.
• The companys tax rate is 40 percent.
• The company anticipates issuing new common stock during the upcoming year.

What is the companys current WACC? (That is before it issues new stock)

How does it change or how is the WACC impacted if the firm needs to issue new common stock instead of using retained earnings? Show your calculation for both and explain the significance of the WACC. What does it represent?