Company Gamma recently hired you as a consultant to estimate the companys WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 40 years, have an 5.00% annual coupon, a par value of $1,000, and a market price of $1,050. (2) The companys tax rate is 40%. (3) The next expected dividend (D1) is $2 a share, the dividend is expected to grow at a constant rate of 4% a year, the price of the stock is $60 per share, the flotation cost for selling new shares is F=10%. (4) The target capital structure consists of 35% debt and 65% common equity. The firm expects to issue new common stock