Given the following information about Company D, what is the comany's weighted average cost of capital (WACC)?

Common Stock: 2 million shares outstanding at $35 per share; stock beta = 0.6

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Bonds:

80,000 bonds outstanding

$1,000 face value for each bond

7% semi-annual coupon

10 years to maturity

The bonds are selling at 106.25% of face value

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Market risk premium = 6%

Risk-free rate = 3%

Tax rate = 21%