Chase Bank wants to revise its capital structure to reduce the overall cost below 12%. Currently its capital structure has a mix of 40% debt, 10% preferred stock and 50% equity. The companys marginal tax rate is 25% that helps to reduce its post tax cost of debt to 15%. The outstanding preferred stock pay dividend of $10 and net sell proceeds from share is $150. The common stock pays the dividend of $5 and is expected to grow at a rate of 5% per year. With a beta of 1.5, the common share price currently is $90. If the going rate is 15% and the risk free rate is 9%, What is Bank of Americas WACC? If it is above 12%, advise them on how to revise the capital structure to reduce the cost?