Yallas Enterprises has the following capital structure:

Debt: 10% coupon, 8 years to maturity	$15,000,000
Preferred shares: 7.5% dividend (100,000 issued)	3,000,000
Common shares: (500,000 issued)	10,000,000
Retained earnings	5,000,000

During the last several years Yallas Enterprises has enjoyed steady growth. The company last paid a dividend of $1.25 and dividends are expected to grow at 8.89%. The common shares currently trade at $18.00. If new shares were issued at $18.00, they would require flotation expenses of 8% of proceeds.

The preferred shares require a current yield of 8% and any new issue would require flotation expenses of 6% of the price to investors.

The bond yield is 12% and interest is paid annually. Flotation costs of new debt would be 5% of proceeds.

Yallas tax rate is 40 percent, and equity financing would require a new share issue.

Required: Calculate the weighted average cost of capital for the firm to 2 decimal places.

Attach your calculations as a file attachment in the question following.