A firm has 2.25 million shares of common stock outstanding with a market price of $20 per share. It has 25,000 bonds outstanding, each selling for $1,100. The bonds mature in 12 years, have a coupon rate of 8.5%, and pay coupons annually. The firm expects its next year dividend to be $2.92 and expects it to grow at 3% in perpetuity. The stock price is currently $20. The firm's tax rate is 35%. You may assume the bonds have a $1,000 face value each.

Question is only on the below portion.

Recalculate the firm's WACC, now assuming the debt is new debt and the investment bankers will charge $60 per bond they sell (The "recovered" sale price on the 12-year bond will be $1040, annual coupon rate of 8.5%, face value of $1,000). The issuance of common new common stock will cost the firm $2/share (the "recovered" price is $18).