Given the following information on Ke-Ma-Gen Ltd., what is its WACC?

Debt:

• Number of bonds = 10,000
• Par value = $1,000
• Coupon rate = 9% (semi-annual coupons)
• Time to maturity = 10 years
• Market value = 98% of par

Common equity:

• Number of shares outstanding = 1,000,000
• Par value = $1
• Price per share = $3.50
• Dividends per share = $0.70

Preferred equity:

• Number of shares outstanding = 50,000
• Price per share = $20
• Dividend yield = 5%

Other information:

• Tax rate = 40%
• Equity beta = 1.2
• Market risk premium = 16%
• Risk-free rate = 5%