Harrison Ltd. is a manufacturer of injection molding equipment used in the production of plastic food containers. It has a common share beta of 0.85 and a preferred share beta of 0.3. It recently negotiated a bank loan with the Royal Bank that had an interest rate of 4 percent, compounded semi-annually. Harrison is considering diversifying into the production of aerospace parts for major aircraft producers such as Boeing, Airbus, and Bombardier. For this industry, Harrison collected data for four pure plays with similar capital structures: Corsair Mustang Mosquito Liberator Common Share Beta 1.45 1.56 1.39 1.48 Preferred Share Beta 0.54 0.61 0.49 0.55 Treasury Spread (%) 2.45 2.58 2.10 2.49 Harrison's optimal capital structure is 40 percent debt, 10 percent preferred shares, and 50 percent equity. The risk-free rate is currently 3 percent and the market risk premium is 5 percent. The marginal tax rate is 25 percent. REQUIRED: 1. Calculate an appropriate WACC for this new venture