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Fleetwood Mac ( FM ) uses only debt and equity in its capital structure. The value of FM ' s debt is $ 8 ,

Fleetwood Mac (FM) uses only debt and equity in its capital structure. The value of FM's debt is $8,000,000 and the value of FM's equity is $14,900,000. FM's bonds are currently selling for $950, mature in 12 years, and have an annual coupon rate of 8%. FM's beta is 1.4, the risk free rate is 6%, and the market return is 14%. FM has a tax rate of 25%. What is FM's WACC?

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