Given the following information for UCW MBA Inc., find the WACC.

Assume the company's tax rate is 35%.

Debt: 10,000 Coupon 6.4% bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108% of par; the bonds make semi-annual payments.

Common stock: 495,000 shares outstanding, selling for $63 per share, beta is 1.15.

Preferred stock: 35,000 shares of 3.5% preferred stock outstanding, currently selling for $72 per share.

Market: 7% market risk premium and 3.2% risk-free rate.

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