System Inc. is expected to pay a $1.50 dividend at year end, the dividend is expected to grow at a constant rate of 6% a year, and the common stock currently sells for $75 a share. The yield on company’s bond is 7.00% and the tax rate is 35%. The target capital structure consists of 25% debt and the rest is common equity. What is the company’s WACC if all the equity used is from new stock with flotation cost of 2%?