$(35$ points$).$ Pacific Utilities Company has a present capital structure $($which the company feels is optimal$)$ of $45$ percent long$-$term debt, $10$ percent of preferred stock, and $45$ percent common equity. For the coming year, the company has determined that its optimal capital budget can be financed with: $($i$)$ $$45$ million of $8$ percent first$-$mortgage bonds with the face value of $$1,000$ and maturity of $12$ years, sold at $$930$; $($ii$)$ $$10$ million of preferred stock costing the company $8$ percent; $($iii$)$ retained earnings. The company$$s common stock is presently selling at $$22$ a share, and next year$$s common dividend, D$1,$ is expected to be $$0\mathrm{.}90$ a share. The company has $10$ million common shares outstanding. Next year$$s net income available to common stock is expected to be $$60$ million. A $6$ percent annual growth in earnings and dividends is expected for the foreseeable future. The company$$s marginal tax rate is $22$ percent. Calculate the company$$s weighted average cost of capital for the coming year.