Assume that you are an intern with the Brayton Company, and you have collected the following data:

1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,050.00

2)The company's tax rate is 40.00%

3) The next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is F=10%

4)The target capital structure is 45% debt and 55% common equity

What is the firm's WACC, assuming it must issue new stock to finance its capital budget?

2) The company