Champlain has a current pre-tax cost of debt of 4%.

The corporate tax rate is 27%

Regarding equity (use CAPM),

the risk free rate is 3%,

market risk premium is 5%

Beta is 1.5.

Their preferred stock pays a constant dividend of $2.50 and the preferred stock trades for $50.

The firm has 1,040,000 shares of common stock outstanding at a market price of $120 a share.

There are 400,000 shares of preferred stock outstanding at a market price of $50 a share.

The bond issue has a 200,000 bonds at $1,000 face value that currently sell at a market value of 107% of face value.

What is the weighted average cost of capital