Avery Corporation's recently hired you as a consultant to estimate WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have a 6.00% annual coupon, a par value of $1,000, and a market price of $1,050.00. (2) The company's tax rate is 21%. (3) The risk-free rate is 4.50%, the market risk premium is 6.50%, and the stock's beta is 1.60. (4) The target capital structure consists of 40% debt and the balance is