A firm has $50 million in 10-year debt with a YTM of 9% and a coupon of 10% and thus selling at a premium of $64.18. It also has 200,000 shares of preferred stock with a $4 dividend that sells for $90 a share and common stock with a book value of $ 80 million and a par value of $5 a share that sells for $50 a share. The firm has a beta of 1.2. The expected return on the S&P500 is 13% and the risk-free rate is 7%. (A) Given this data find the WACC for this firm if the tax rate is 40%. (B) Next, assume this firm has no preferred stock (it will replace the amount with debt) to raise the same total capital as in (A), and  wants to get into a new industry and has chosen a proxy company with a beta of 1.6 and a debt-to-equity ratio of 0.4. Find the WACC for the firm.