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( 2 0 points ) Zi corp. has obtained the financing by issuing bonds and stocks. It has just issued 5 0 , 0 0

(20 points) Zi corp. has obtained the financing by issuing bonds and stocks. It has just issued 50,000 zero-coupon bonds with 3 years of maturity. Each bond has the face value of $1,000 and sells at $849.2 now. Zi has issued 1 million of common stocks and each stock sells at $38 now with a beta of 1.1. The market risk premium is 7% and the risk-free rate is 4% per annum. It has also issued 150,000 preferred stocks. Each preferred stock pays $2 at the end of every year and sells at $16 now. With tax rate of 21%,what is the weighted average cost of capital for Zi corp.?
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