Calculate the WACC for the firm below:

Firm A

Capital Structure $20\%$ debt, $20\%$ preferred stock, $60\%$ common stock

Tax Rate $25\%$

Debt:

Preferred Stock:

$$1,000$ par value; $10$ year; $14\%$ coupon; quarterly payment noncallable bond selling for $$1,125\mathrm{.}89.$ No floatation cost.

Common Stock: $10\%,$$$100\mathrm{.}00$ par value perpetual preferred stock sells for $$105\mathrm{.}09$

CAPM $$50\mathrm{.}00$ per share, $D0=$$$6\mathrm{.}25,g=2\mathrm{.}3\%$

$b=1\mathrm{.}2,rRF=7\mathrm{.}00\%,rM=12\mathrm{.}00\%$

BYRP

Bond$-$Yield Risk Premium $=2\mathrm{.}00\%$