You are currently employed in the financial department of Benderhein Inc., and you have been given the following data: - The companys noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. - Tax rate is 30% - The last dividend was $0.61 a share, the dividend is expected to grow at a constant rate of 6% a year, the price of the stock is $13.75 per share, and the flotation cost for selling new shares is 10%. - The beta of the company is 1.25, the risk-free rate is 4.50%, and the return on the market is 9.50%. - The CFO has estimated a judgmental risk premium of 3% over its bond yield. - The company also carries 15%, $10 par value preferred stock on its balance sheet and its preferred shares are currently trading at $16.66. - Benderheins capital structure is 30% debt, 15% preferred equity, and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget and that it uses an average of all methods to calculate its cost of common equity?