Iniesta Corporation's target capital structure is 40 percent debt, 50 percent common stock, and 10 percent preferred stock. Information regarding the company's cost of capital can be summarized as follows:

• Company sold a non-callable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000.
• The company's preferred stock currently sells for $87.88 per share, and it pays an $8.00 annual dividend.
• The company is expected to pay $1.45 dividend per share at the end of this year. Financial analysts believe that the company is expected to grow at a constant rea of 6.50 percent in future years. The stock of the company is currently sells for $22.50
• The company's tax rate is 40%
• What is the Iniesta Corporation's weighed average cost of capital (WACC)?