Given the following information:

Miramar Power has a tax rate of 35 percent and:

debt: 10,000, 5 percent bonds outstanding, $1,000 par value currently selling at 100 percent of par.

YTM = 4.8%

common stock: 200,000 shares outstanding selling for $50 per share, the beta is 1.3

market: 7 percent market premium, and a 3 percent risk-free rate.

Calculate the WACC: SHOW ALL WORK TO RECEIVE CREDIT