Micro Spinoffs, Inc., issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the debt is selling at $1,050. The firm's 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. Suppose Micro Spinoffs' cost of equity is 12%. What is its WACC if equity is 50%, preferred stock is 20%, and debt is 30% of total capital?

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Time Coupon rate 20.00 years 8% Tax bracket Dividend Stock price Cost of equity Equity Preferred stock Debt 35% S 4.00 S 40.00 12% 50% 20% 3000