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DOC Corporation has 5 0 0 , 0 0 0 preference shares trading at $ 3 each. The market risk premium is 1 2 .

DOC Corporation has 500,000 preference shares trading at $3 each. The market risk premium is 12.5% p.a., the risk-free rate is 2.5% p.a., and the company tax rate is 30%. The market yield on the DOC preference shares is 6.70% per annum. The company's bonds have a total market value of $9,000,000, have a coupon rate of 2% p.a. and current yield to maturity is 4% per annum. DOC Corporation has 11 million ordinary shares outstanding that are currently priced at $7 each and have a beta of 1.05.
What is DOC Corporations WACC?

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