Adam corporation outstanding bond selling at 950$. The bond has a face value of 1000$. Annual coupon rate of 8%. And 15 years until maturity. New bonds will be as risky AS the old ones. However, the firm will incur flotation cost of 5%on new bond issue. Its tax rate is 20%. It can sell new preferred stock at 1000 per share with dividend of rate 10%. However, firm will incur flotation cost of 10% on new preferred stock. ACS COMMON STOCK currently sells for $30.00 per share. The next expected dividend per share, D1. Is 3.00$. and the dividend is expected to grow at constant rate 6% per year. AC plants to raise its equality capital by retaining earnings. The target capital structure consists of 320% debt. 10% preferred stock, and 60% of common equity.

What is Adams WACC?