Debt

$8,4007\mathrm{.}0$ percent coupon bonds outstanding, with $25$ years to maturity and a

quoted price of $106\mathrm{.}50.$ These bonds have a par value of $$2,000$ and pay

interest semiannually.

Common stock: $275,000$ shares of common stock selling for $$65\mathrm{.}50$ per share. The stock has a

beta of $1\mathrm{.}04$ and will pay a dividend of $$3\mathrm{.}70$ next year. The dividend is

expected to grow by $5\mathrm{.}0$ percent per year indefinitely.

Preferred stock: $9,000$ shares of $4\mathrm{.}50$ percent preferred stock selling at $$95\mathrm{.}00$ per share.

Market: $,11\mathrm{.}0$ percent expected return, a risk$-$free rate of $4\mathrm{.}10$ percent, and a $25$

percent tax rate.

What is the firm's cost of each form of financing?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Calculate the WACC for the company.

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$