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21-A companyhas a capital structure that consists of $7 million of debt, $2 million of preferred stock, and $11 million of common equity, based upon

21-A companyhas a capital structure that consists of $7 million of debt, $2 million of preferred stock, and $11 million of common equity, based upon current market values. Theyield to maturity on its bonds is 7.4%, and investors require 8% return on the companyspreferred and 14% return on thecommon stock. If the tax rate is 35%, what is thecurrent WACCof this company?

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