Given: The firm has enough cash on hand to provide the necessary equity financing. Common Stock/Equity 1,000,000 common shares outstanding Current stock price is $11.25 per share Dividends expected at $1.00 per share Dividends will grow at 5% per year aBer that FlotaDon costs for new share would be $0.10 per share Preferred Stock/Equity 150,000 preferred share outstanding Current preferred stock price is $9.50 per share Dividend is $0.95 per share If new share issued, they must be sold at 5% less than current market price and involve direct flotaDon costs of $0.25 per share WACC Given: Debt $10,000,000 (par value) in outstanding debt in form of bonds 10 years le; to maturity. Annual coupons at coupon rate of 11.3% Currently sell for 106% of par value. FlotaDon costs for new bonds would equal 6% of par value. Tax rate 40%

solve for WACC