Given the following information for Kose, Inc, find the WACC. Assume the company's tax rate is 35%.
Debt: 10,000 9% coupon bonds outstanding, $1,000 par value, 25 years to maturity, currently selling for 100% of par, and the bonds make annual payments.
Common stock: 200,000 shares outstanding, selling for $60 per share; the beta is 1.15.
Market: 7% market risk premium and 3% risk-free rate.