Pitney Bowes (PBI) is a pure-play, leveraged firm which offers mail services to businesses of all sizes. Your boss, the CFO of Pitney Bowes, has asked you to compute the weighted average cost of capital for the company. You have assembled the data below. Bonds: PBI has borrowed from creditors using three types of bonds, each with a $1,000 par value and paying interest semi-annually 6.25% bonds due three years hence. Current price: $1,044.61. There are 0.85m of these bonds outstanding. 4.70% bonds due six years hence. Current price: $915.41. There are 1.90m of these bonds outstanding 5.25% bonds due twenty-three years hence. Current price: $968.74. There are 0.54m of these bonds outstanding Common stock: PBl has just paid an annual dividend of $0.75 per share of common stock; the next dividend will be paid one year hence. Common shares currently trade for $9.80 per share. 186.7m common shares are outstanding presently. PBl's equity beta is 1.30. Additional information premium is 7%. PBI's marginal tax rate is 40%. The risk-free rate is presently 1.6%. The historical market risk Use this information to calculate PBI's WACC. Modify the basic WACC equation as needed to fit PBl's situation