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BF Supermart Corporation's preferred stock has $ 1 5 dividend per share, and is currently selling for $ 1 0 5 . The firm currently

BF Supermart Corporation's preferred stock has $15 dividend per share, and is currently selling for $105. The firm currently also has a 12-year, 11% annual coupon bond with a par value of $1000, selling at a yield to maturity of 8%. The firm estimates that its common stock has a risk premium of 7.5% over and above its bonds. Given that the tax rate is 30%, the target capital structure is 20% debt, 30% preferred stock and 50% equity, and the firm will not be issuing new stock, what is the firm's WACC?

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