Fresno Co has the following capital structure. It has 2 million shares of common stock selling for $20 each. The stock will pay a dividend of $2 next year and this dividend is expected to grow at the rate of 5% annually. Fresno has just raised $20 million by selling 10% coupon bonds at par. Fresno also has 1 million shares of preferred stock, which pays a dividend of $1.50 annually, and the preferred shareholders have a required rate of return of 12%. has a 35% income tax rate. Find the WACC of Fresno.