FIN 222 Ltd has decided to use the weighted average cost of capital (WACC) to discount the after-tax cash flows associated with project evaluation. You have been given the task of determining the after-tax WACC of the firm. You are informed that FIN 222 Ltd uses the following securities to fund its operations:

* 7,000 individual bonds with a face value of $1000 that will mature in 10 years' time offer a coupon that is paid half-yearly. The coupon rate for these bonds is 8% per annum. The current market interest rate for these bonds is 9% per annum.

* The beta of FIN 221 Ltd is 1.2, the risk-free rate is currently 4% per annum, and the market risk premium is 6%. Currently 800,000 ordinary shares are outstanding and each share is trading at a market price of $5.

* 400,000 preference shares, which pay an annual dividend of 1% on a stated value of $100. Each preference share is trading at a market price of $10.

* The company tax rate is 30 percent.

Question: Compute the WACC based on the above information