1.WACC estimation (simpler practice problem).A company issued debt in the past with a 4% coupon rate which has a market value of $500 million today. Today, it borrowed $200 million worth of debt at par with a coupon rate of 5%. It has equity composed of 10 million shares each priced at $60 with beta of 1.25. The shares will pay a dividend of $4 in one year and they'll continue to grow forever at a constant rate. If the risk free rate is 3%, the expected market return is 8% and the tax rate is 26%, what is the company's WACC?