1.  A firm has 100 bonds outstanding with 10 years until maturity. The bonds pay an annual coupon, a coupon rate of 3%, a face value of $1,000, and a yield to maturity of 2.75%. Also, the firm has 50,000 shares of stock outstanding. The stock has a beta of 1.4 and a current price of $12. The risk-free rate is 1.5% and the expected return on the market is 8%. Finally, the firm has 1,000 shares of preferred stock outstanding. The preferred stock has a price of $24 and pays a $2 annual dividend. The firm's tax rate is 21%. What is the weighted average cost of capital for this firm?