A firm has the following capital structure: Debt: 1,200,000 Common Equity: 1,000,000 The firm is trying to get a more accurate read on its current cost of debt capital. Its bonds were issued at par three years ago, and now have twelve years until maturity. Interest of $70 per year is paid, and coupon payments are made semi -annually. Their bonds are currently trading at $957.36.

Additional information on their equity below:

Current stock price: $50.00 per share

The last dividend paid: $1.35 per share

Dividend growth rate: 6%

Corporate tax rate: 35%

What is their WACC?