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Your company is estimating its WACC. Its target capital structure is 35 percent debt, 10 percent...

Your company is estimating its WACC. Its target capital structure is 35 percent debt, 10 percent preferred stock, and 55 percent common equity. Its bonds have a 10 percent coupon, paid semi-annually, $1000 par value, a current maturity of 8 years, and sell for $950. The firm’s preferred stock sell for $75 and pay quarterly dividend of $2. This company’s beta is 1.25, the risk-free rate is 4 percent, and the expected market return is 9 percent. The firm's marginal tax rate is 30 percent. What is the WACC of this company?

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