Given the following information for Gordon Corporation find the WACC.

Equity Information :

• 70 million shares
• $50 per share
• Beta = 1.35
• Market risk premium = 8%
• Risk-free rate = 6%

Debt Information :

• $1 billion in outstanding debt (face value)
• Current quote = 110 (bond prices are quoted as a percent of par value)
• Coupon rate = 8%, semiannual coupons
• 20 years to maturity
• Tax rate = 40%