Debt: 9,300 6.5 percent coupon bonds outstanding. $1,000 par value, 22 years to maturity, selling for 104.75 percent of par, the bonds make semiannual payments.
Common stock: 240,000 shares outstanding, selling for $64.80 per share, beta is .88 and will pay a dividend of $3.00 next year.The dividend is expected to grow by 5.3% per year indefinitely.
Preferred stock: 8,300 shares of 4.65 percent preferred stock outstanding, currently selling for $94.30 per share.
Market: A11.70 percent expected return, a 5.3 percent risk-free rate, and a 38 percent tax rate.
Calculate the WACC for this firm.