(a). You were recently hired as a consultant to estimate the weighted average cost of capital (WACC) at Rebel Supply Company. You have obtained the following information:

a.) The firm's semi-annual bonds mature in 10 years, have an 9.00% annual coupon, a par value of $1,000, and a market price of $1,153.00.

b.) The risk-free rate is 2.0%, the market risk premium is 7.0%, and the stocks beta is 1.20. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock.

c.) The target capital structure consists of 30% debt and 70% common equity. The companys tax rate is 40%.

What is the firms weighted average cost of capital (WACC)?