You have been tasked to calculate the cost of capital of Absco Energy. At present, Absco Energy $($Absco$)$ has $8$ million common shares and $1$ million preferred shares outstanding. They are trading at $$15$ and $$23$ per share respectively. Absco's preferred dividend of $$2\mathrm{.}50$ is due in one year.

Absco's beta is estimated to be $1\mathrm{.}2.$ The risk$-$free rate is $4\%,$ and the market risk$-$premium is estimated to be $5\mathrm{.}5\%.$ The company has $$40$ million book value of debt outstanding that is trading at $95\%$ of book value. Absco's outstanding debt has a coupon rate of $5\mathrm{.}3\%$ and a yield to maturity of $6\mathrm{.}60\%.$ Finally, Absco's corporate tax rate is $35\%.$

calculate the company's weighted average cost of capital $($WACC$).***$ You must show your work to get credit.