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3. The common stock of Plank Communications has a beta of 1.37 , the risk-free rate is 3.4 percent, and the market risk premium is

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3. The common stock of Plank Communications has a beta of 1.37 , the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The yield to maturity on the firm's bonds is 7.6 percent and the debt-equity ratio is .45 . What is the WACC if the tax rate is 23 percent and all interest is tax deductible? (Up to 7 points)

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