3. Johnson Industries finances its projects with 40% debt, 10% preferred stock and 50% common stock. The company can issue bonds at a YTM (Yield to Maturity) of 8% The cost of preferred stock is 9%. The company's common stock currently sells for $32 per share. Next years dividend is expected to be $2.00 (D.) and is expected to grow at 6% per year indefinitely The company's tax rate is 30%. What is the company's WACC using internal equity (retained earnings)? [Chapter 12]