LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a $12$ percent coupon, paid semiannually, a current maturity of $17$ years, and sell for $$1,162($Hint: use the current bond price,$$1,162,$ when computing market value of debt$).$ It has $100,000$ bonds outstanding. The firm can issue new $20-$year maturity semiannual bonds at par but will incur flotation costs of $$50$ per bond $($Hint: the coupon rate on the new bonds $=$ the YTM on existing bonds$).$ The firm could sell, at par, $$100$ preferred stock that pays a $12$ percent annual dividend that is currently selling for $$120.$ The firm currently has $1,000,000$ shares of preferred stock outstanding. Rollins' beta is $1\mathrm{.}38,$ the risk$-$free rate is $3\mathrm{.}14$ percent, and the market risk premium is $6$ percent. The common stock currently sells for $$100$ a share and there are $5,000,000$ shares outstanding. The firm's marginal tax rate is $40$ percent. What is the WACC?