The balance sheet that follows indicates the capital structure for Nealon Inc. Flotation costs are (a) 15 percent of the market value for a new bond...

The balance sheet that follows indicates the capital structure for Nealon Inc. Flotation costs are (a) 15 percent of the market value for a new bond issue, and (b) $2.01 per share for preferred stock. The dividends for common stock were $2.50 last year and are projected to have an annual growth rate of 6 percent. The firm is in a 34 percent tax bracket. What is the weighted average cost of capital if the firm’s finances are in the following proportions?