You have been provided with the following information about the capital structure of Happy Holiday, a large tour and resort company: Bonds the company has 25,000 bonds with a face value of $100 each and a coupon rate of 6% with interest paid semi-annually. The current price of the bonds is $92.89, and they have 10 years to maturity. Flotation costs are debt is estimated at 4% Preference shares There are 2 million preference shares outstanding. The shares carry a stated dividend of $1.60 per share and have a current market price of $22 per share. Flotation costs are estimated at 5% Common shares There are 3 million shares outstanding. The current market price of the shares is $53.20 each. The shares paid a dividend of $2.70 per share last year and investment analysts believe the dividends should grow at an average annual rate of 7% for the foreseeable future. Flotation costs are estimated at 6%. Required: With a tax rate of 30%, calculate the companys weighted average cost of capital. (Use 4 decimal places when calculating rates)