5) ABC Inc. has the following information. Find the WACC. (10 marks) Tax rate = 37%; Market: 8% market risk premium and 3.5% risk-free rate. Common stock: 500,000 shares outstanding, selling for $65 per share; the beta is 1.25. Debt: 10,000 5.8% coupon bonds outstanding, $1,000 par value, 28 years to maturity, selling for 110% of par; the bonds make semi-annual payments. Preferred stock: 25,000 shares of 3.2% preferred stock outstanding, currently selling for $75 per share