Surf Rider Inc. has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a S1,000 face value, and a $1,100 market price. The company's 100,000 shares of preferred stock pay a S3 annual dividend, and sell for S60 per share. The company's 500,000 shares of common stock sell for $20 per share and have a beta of 1.2. The risk free rate is 4%, and the market portfolio return is 12%. Assuming a 40% tax rate, what is the company's WACC?