Peter's audio has a yield to maturity on its debt of 7. 8 percent, a cost of equity of 12. 4 percent, and a cost of preferred stock of 8 percent. The firm has 105 shares of common stock outstanding at a market price of rm22 a share. There are 25 shares of preferred stock outstanding at a market price of rm45 a share. The bond issue has a total face value of rm1,500 and sells at 98 percent of face value. If the tax rate is 21 percent, compute the weighted average cost of capital assuming all interest is tax deductible.