Pearson Ltd is financed through the following sources:

• Ordinary share: 100 million shares outstanding, with current market price of

  one share at $2.2

• Bank loan: $100 million borrowed from ANZ bank with an interest rate of 6%

• Corporate bond: Pearsons corporate bond is currently trading at 80% of its

  face value. The bonds pay coupons once per annum and have a total book value of $100 million. The current yield to maturity on the bond is 8% per annum.

  The risk-free rate is 3% and the market risk premium is 6%. It is estimated that Pearson has an equity beta of 1.5. Assume corporate tax rate is 30%,

• calculate the WACC for Pearson Ltd.