8. ____________ Given the following information, calculate the WACC.

Capital Structure: Debt = 40%

Pref. Stock = 20%

Common St = 40%

Additional Information:

Corporate Tax rate = 25%

Preferred Dividend = $8.50

Expected Common Dividend = $2.50

Preferred Price = $105.00

Growth Rate = 7%

Bond Yield = 9.5%

Preferred Floatation Cost = $3.60

Common Stock Price = $75.00