Easter Corp has 1,000 Bonds outstanding with a current market price of $1,099/bond. The bonds have 10 yrs to maturity, pay interest semiannually, and have a coupon rate of 8.5%. The flat corporate tax rate of 21% applies to Easter Corp.

Easter Corp also has 2,500 shares of preferred stock on its balance sheet. Preferred stockholders receive a $12.50, fixed dividend annually and the preferred stock is currently valued at $180/share.

Finally, Easter Corp has 50,000 shares of common stock outstanding. The market price is $36.00/share and common stockholders recently received a $2.50 dividend. Dividends have been growing at a constant rate of 3.5 % in recent years. Assume that the mid-term Treasury rate is 3%, Easter's beta is 1.30, and the market's required return is 9%. Additionally, common stockholders require a 3% premium above the bondholder's expected return.

Using the 'market value of capital and average the estimates of the common shareholder' required return, find Easter Corp's weighted average cost of capital (WACC).

If you could work the problem out step by step in excel that would be most helpful.