A firm with a 34% tax rate and no preferred stock outstanding has a D/E ratio of 1.25. Further, the firm's effective annual before-tax cost of debt is 12.5% and cost of equity is 17.45%. What is the firm's WACC?

A firm with a 30% tax rate has the following effective annual cost rates:

• before-tax cost of debt = 7.45%
• cost of preferred stock = 8.4%
• cost of equity = 14.4%

Further the firm's capital structure has the following market value weights:

• debt = 20%
• preferred = 10%
• equity = 70%

What is the firms WACC?