Given the following information for UARE Inc. Find the WACC.

Tax rate 35 percent

Debt:

Bonds outstanding: 6000

Coupon on bonds: 6 percent

Par value of bonds: $1000

Bonds selling at what percent of par: 105

Bonds make coupon payments: semi-annually

Years to maturity of bonds 25

Common Stock:

Shares Outstanding: 185,000

Current price/share: $58.00

Beta: 1.10

Market Information:

Risk premium: 7 percent

Risk-free rate 5 percent