A company is looking to invest in new machinery. The current financing is 30% debt, 45% common stock, and 25% preferred stock. The company anticipates the new debt issue will consist of 10-year $1,000 face-value bonds that will be priced at par. The bonds will pay an annual coupon of $80. Flotation costs for this new bond issue will be $35 per bond. The company has recently paid a dividend of $2.30 and is expecting to increase the dividend by 5% per year, indefinitely. The current share price for the company’s common stock is $29.76. The company also plans to issue preferred stock that will pay a dividend per share of $3.50 per year in perpetuity. The market price of the preferred stock will be $32. The flotation costs of both the common stock issue and preferred stock issue will be $4.50 per share. What is the weighted average cost of capital for this company if the company’s marginal tax rate is 39%? 11.30% 12.41% 10.44% 13.84% 9.41%