(1)Short-term debt is permanent in nature. The company currently pays 6% and short-term borrowing costs are not expected to change over the next year. Short-term debt is valued at par.\ (2)Long-term debt is a 15-year 9% coupon bond paid semiannually. The bond currently trades for 105% of par.\ (3)The company has 20 million shares outstanding with a market price of $18. Based on forecasts, it is anticipated that any new equity capital required will come from internal sources. Net income for the most recent year is $26 million, and the companys tax rate is 35%.\ (4)Government 1-year Treasury bills are yielding 3%, while 10-year government bonds yield 5.5%. Inflation is currently running at 1.5%.\ (5)The beta for the companys stock is 0.9, and the market risk premium is 5%. Although the company has not paid a dividend on its common stock in the past, the companys new dividend policy calls for dividends to be paid starting next year. Dividends will be 40% of earnings, whereas growth in earnings is expected to be 6% per year.\ Based on the above information, calculate Rolling Blackouts Utilities WACC.