You have been provided with the following information about Company Z which pays taxes at 35%:

Common shares There are 4 million shares outstanding. The current market price of the shares is $45 each. The shares paid a dividend of $2.50 per share last year and investment analysists believe the dividends should grow at an average annual rate of 5% for the foreseeable future. Flotation costs are estimated at 7.5%.

Preference shares There are 2 million preference shares outstanding. The shares carry a stated dividend of $1.50 per share and have a current market price of $25 per share. Flotation costs are estimated at 6.5%

Bonds the company has 50,000 bonds with a face value of $100 each and a coupon rate of 5% with interest paid semi-annually. The current price of the bonds is $98, and they have 14 years to maturity. Flotation costs for debt is estimated at 5.5%

Required: Calculate the companys weighted average cost of capital. (Use 4 decimal places when calculating rates)