Solve the below problem:
Q: Micro Spinoffs, Inc., issued 10-year debt a year ago at par value with a coupon rate of 9%, paid annually. Today, the debt is selling at $1,360. The firms tax bracket is 35%. Micro Spinoffs also has preferred stock outstanding. The stock pays a dividend of $4 per share, and the stock sells for $40. Micro Spinoffss cost of equity is 12%. What is its WACC if equity is 60%, preferred stock is 10%, and debt is 30% of total capital?