$1.$ Dave$$s Inc. recently hired you as a consultant to estimate the company$$s WACC. You have obtained the following information. $(1)$ The firm's bonds have YTM of $6\%.(2)$ The company$$s tax rate is $40\%.(3)$ The risk$-$free rate is $3\mathrm{.}5\%,$ the market return is $15\%,$ and the stock$$s beta is $1\mathrm{.}8.(4)$ The target capital structure has a debt$-$to$-$equity ratio equals to $4.$ The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC?

$2.$ What is the weighted$-$average cost of capital for a firm with the following sources of funds and corresponding required rates of return: $$10$ million common stock at $11\%,$ $$5$ million preferred stock at $8\%,$ and $$8$ million debt at $6\%.$ All amounts are listed at market values and the firm's tax rate is $40\%.$