3. WACC

The HouseDepot Inc has 30,000 bonds outstanding (100$ each) that are selling at 100%. The bonds are yielding 4.8 percent. The company also has 10,000 shares of preferred stock outstanding currently yielding 16.5 percent. It has also 100,000 shares of common stock outstanding. The preferred stock sells for $114 per share and the common stock sells for $84 a share. The expected return on the common stock is 11.2%. The corporate tax rate is 25 percent. What is VWX Inc.s weighted average cost of capital?