Given the following information about ABC corporation

The common stock is currently trading at $10/share and there are 1 million shares outstanding. The firm has a Beta of 1.2, the economys risk-free rate is 2% and the equity market premium is 4%. ABCs preferred stock is trading at $12/share and there are also 1 million shares outstanding. The par value of the preferred stock is $5 and it has a dividend yield of 20%.

A series of 5,000 bonds were issued with a face value of $1,000. These bonds are now currently selling at $960 each. The bonds have a 10-year maturity and a coupon rate of 10% paid semi-annually. The firms corporate tax rate is 30%. What is the firm's WACC?

Book Value Amount ($ millions) 10 5 Security Common Stock Preferred Stock Bonds Retained Earnings Total 5 2 22