Wentworth Co. is planning a $100 million expansion. This expansion will be financed, in part with debt issued with a coupon interest rate of 9.50%. Interest is paid annually. The bonds have a 25-year maturity and a $1000 face value, and they will be sold to net Wentworth $1020 after issue costs. Wentworth's marginal tax rate is 40%. Preferred stock will cost Wentworth 15% after tax. Wentworth common stock pays a dividend of $2 per share. The current market price per share is $25, and new share can be sold to net $24 per share. Wentworth's dividends are expected to increase at an annual rate of 8% for the foreseeable future. Wentworth expects to have $20 million of retained earnings available to finance the expansion. Wentworth's target capital structure is as follows: Debt 40% Preferred Stock 15% Common Equity 45% Calculate the weighted average cost of capital that is appropriate to use in evaluating this expansion program