Now (use the following information) suppose that:

The cost of debt is 3.85% (before tax),

Flotation costs (F) = 7% of issue price,

The debt is trading at $984.00,

There are 7,456 bonds outstanding,

The tax rate is .35,

D0 = $2.65,

g = 3.35%,

Beta = 1.24,

rRF = 1.34%,

RPm = 4.5%, (market risk premium)

The firm has 200,000 shares of common stock outstanding,

Common stock shares are trading at $55.00/share (P0).

Market value of the firm's debt = 6823134.72

Market value of the firm's equity = 11000000

Weight of debt for the firm (Wd). = 38.28%

Weight of equity for the firm (Wce).= 61.72%

What is the firm's WACC? (Briefly describe your approach/method as well as your answer)