To estimate the company's WACC. (1) PNZ stocks expected dividend, D1 is $3, the dividends are expected to grow at a constant growth rate of 6%. The flotation cost is 8%. Stock price is $60. (2) The firm's bonds mature in 10 years, have an 6.00% annual coupon, a par value of $1,000, and a market price of $ 880. (2) The company's tax rate is 40%. The target capital structure consists of 35% debt, 55% equity and 10% preferred stock. Preferred stock has a cost of 8.5%.

What is its WACC (Weighted Average Cost of Capital)?