common sock currente sels for $100 a share and them are 5,000,000 hares outhandin. The trmk marginal tak rate is 40 gerrent What is the Whec? LUVFINANCE. Inc, is estimatine its WACC. It is cperating at its optimal capital structurc, Its outstanding ben di have a 17 percent toupon, pald semiannually, a current maturity of 17 years, and soll for 51.162 Hint use the current bond price.51,162, when computing market value of debe. It tas 100,000 bonds cutstanc ing. The frm can issue new 20 -year maturity seniannual bands at par but will Incur fothtion costs of 550 per bond otint: the coupon rate on the new bonds * the YTM on existing bond - The hira ceuld sel, at par, 3100 preferred stock that pays a 12 percent annuar divilend that is currently seling for 5120 . The fren currently has 1.060,000 shares ot preferred stock outstanding Rollia' beta is 1.1 ib, tie risk-free rate is 1.76 percent, and the manket risk premium is 6 pereent. The common stock curtently vells foe $100 a share and there are 5,000,000 shures cutstanding. The firmis marginal tac fate i 40 percent. What is the WACC