Daves Inc. recently hired you as a consultant to estimate the company's weighted average cost of capital (WACC). You have obtained the following information, (1) The firm's noncallable bonds mature in 20 years, have an 6 percent annual coupon, a par value of $1,000, and a market price of $1,000 (2) The company's marginal tax rate is 25 percent. (3) The stock is in a state of constant growth with an expected dividend yield of 4.5 percent and an expected capital gains yield of 5.5 percent. (4) The target capital structure consists of 25 percent debt and the balance is common equity