Trans Canada Pipelines has 1.5 million 4% preferred shares outstanding with a face value of $100. The preferred shares are trading at 105% of par value. The firm also has 8 million shares of common stock with a book value of $18 per share. The company just paid an annual dividend of $2 per share and shareholders expect it to grow by 0.8% per year forever. The current beta of the common stock is 0.9. There is also 140,000 outstanding debt with a coupon rate of 6% and an annualized yield to maturity of 4.6% (nominal semi-annual rate). The bonds have semi-annual coupons and have 10 years left to maturity. The Treasury bill rate is 1.8% and the return on the market is 8%. The corporate tax rate is 35%. Calculate Trans Canada Pipelines weighted average cost of capital.