ABC Industries is considering expanding their facilities. As part of the decision process, ABC is calculating its weighted average cost of capital (WACC). Your assignment is to calculate the company's WACC based on the following information: 1. The firms' tax rate is 22%. 2. The current market price of ABC 's outstanding bonds is 107% of their $1,000 par value. The bonds have an annual coupon rate of 6.4% and make coupon payments semiannually. The bonds mature in 15 years. 3. The current price of the firm's preferred stock is $86.00 per share. The stock has a $100 par value and a 4.4% annual dividend rate (paid annually). 4. The current price of the firm's common stock is $76.50 per share. Its next (upcoming) semiannual dividend will be D1=$3.80 per share. Dividends are paid semiannually and are expected to grow at an annual rate of 5% into the foreseeable future. NOTE that $3.80 is the amount of the semianmual dividend. It does not need to be divided by two. 2021 Balance Sheet (thousands of dollars)