2. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $1,050 market price (Rp - 7.48%). The company's 100,000 shares of preferred stock pay a $4 annual dividend, and sell for $50 per share. The company's 400,000 shares of common stock sell for $27 per share and have a beta of 1.3. The risk free rate is 4%, and the market risk premium is 12%. Assuming a 35% tax rate, what is the company's WACC? (03 marks)