Debt: 10,300 7.3 percent coupon bonds outstanding, with 22 years to maturity and a quoted price of 107.25. These bonds pay interest semiannually.

Common stock: 290,000 shares of common stock selling for $65.80 per share. The stock has a beta of .98 and will pay a dividend of $4.00 next year. The dividend is expected to grow by 5.3 percent per year indefinitely.

Preferred stock: 9,300 shares of 4.65 percent preferred stock selling at $95.30 per share.

Market: A 10.7 percent expected return, a risk-free rate of 5.3 percent, and a 38 percent tax rate.

Required: Calculate the WACC for Parrothead Enterprises