Assume ALFA Company has a bond issue with a ytm of 6%. The company has 3,200,000 shares of common stock outstanding with a dividend growth rate of 1.2%. They will issue a 75 cent dividend next week and their beta is 1.4. The T-bill rate is 2% they have 10,000,000 in preferred stock with a 7.55% dividend. The companys tax rate is 20%. The capital structure is 50% equity 10% preferred stock and 40% debt. The market risk premium is 6.5%.

find WACC