Cost of Capital: Find the WACC given the following information. XYZ issues 100 10-year bonds selling at $970 with a par of $1000 and flotation of 4%. They have a coupon of 10% paid semiannually. XYZ issues 1000 shares of preferred stock selling at $50 with a flotation of 2% and an annual dividend of 5% based on $100 par. XYZ issues 10000 common shares at $7 with additional underpricing of $0.50 and flotation of $1. XYZ just paid a dividend of $0.25. Investors require a 200% return. Taxes are at 20%. Dividends have been paid over the past 5 years:

1	$0.01
2	$0.02
3	$0.04
4	$0.08
5	$0.16