A firm has determined its optimal structure which is composed of the following sources and target market value proportions, long-term debt 45% and common stock equity 55%. Debt: The firm can sell a 14-year, $1,000 par value, 12 percent bond for $1,050. A flotation cost of 3 percent of the face value would be required. Additionally, the firm has a marginal tax rate of 32 percent. Common Stock: the firm's common stock is currently selling for $75 per share. The stock must be underpriced by $3 per share, and the flotation costs are expected to amount to $2 per share. The firm expects to pay cash dividends of $4.23 per share next year. The dividends paid on the outstanding stock over the past 5 years (2011-2015) were as follows: Year Dividend Calculate the weighted average cost of capital? 2015 3.99 2014 3.84 2013 2012 3.42 3.70 2011 3.22