Christensen Cabinet Works maintains a debt-equity ratio of 0.65 and has a tax

Christensen Cabinet Works maintains a debt-equity ratio of 0.65 and has a tax rate of 32
percent. The firm does not issue preferred stock. The pre-tax cost of debt is 9.8 percent. There are 25000 shares of stock outstanding with a beta of 1.2 and
a market price of $19 a share. The current market risk premium is 8.5 percent and the current risk-free rate is 3.6 percent. This year the firm paid an annual
dividend of $1.10 a share and expects to increase that amount by 2 percent each year. Using an average expected cost of equity what is the weighted average
cost of capital?