9. Malitz Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. - Malitz's noncallable bonds mature in 26 years, have a 9% annual coupon, a par value of $1,000, and a market price of $1,120. - The company's tax rate is 35%. - The risk-free rate is 5%, the market risk premium (i.e., RmRf ) is 6%, and the stock's beta is 1.3 . - The target capital structure consists of 40% debt and the balance as common equity. There are no preferred shares. Malitz uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? Hint: First calculate the cost of debt, second calculate cost of equity, third calculate WACC