Given the following information about Lingenburger Co., Find the WACC, here are the facts;

- marginal tax rate = 0.30

- 8% semiannual bands trading at $748.99 with 12yrs. left until maturity

- 10% preferred (annual) stack with 100 par value a trading at $80

- Last dividend paid was $7.62

- Market risk premium = 5%

- Current t bill yield is 4%

- Beta = 2.2

- Growth rate in dividends is expected to be 5% indefinitely

- $1 million in retained earnings account

- Optimal Capital Structure; 40%(debt)/ 10%(preferred stock)/50% (equity)

- If issuing new common stock, will face flotation costs of 15%

- Occasionally use the bond yield plus premium approach, risk premium in this case is 2.64%

Find cost debt, cost of preferred stock, and WACC.