6. Given the following information for BobCat Inc., calculate the firm's WACC. Assume the firm's tax rate is 21% Debt: 5,000 6% semiannual coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for $1,150. The firm uses the existing yield to maturity on this debt issue as an estimate for the cost of new debt Equity: 175,000 shares outstanding, selling for $58 per share; the firm's beta is 1.10 Market: 7% market risk premium and 3% risk free rate The firm's stock is valued using the constant growth model. The firm's next expected dividend is $3.48 and is expected to grow at 5% forever. . Use a simple average of the two cost of equity components in the final WACC calculation.