Polite Olive Inc. recently hired you as a consultant to estimate the companys WACC. You have obtained the following information.

• The firm's noncallable bonds mature in 10 years. The bonds have a 7.25% annual coupon rate, a par value of $1,000, and a market price of $1,080.00. The bonds pay coupon payments semi-annually. The firm has 500,000 bonds outstanding.
• The companys tax rate is 21%.
• The firm has 6%, $50 par value preferred stocks. There are 5 million shares outstanding. The preferred stock currently sells at $42 per share.
• Common equity investors bond-yield risk premium is 6.5%.
• The risk-free rate is 2.15%, the market risk premium is 12.00%, and the common stocks beta is 0.95.
• The firm has 30 million shares outstanding of common stocks that sell at $24 per share. The firm just paid a dividend of $2.10 per share, and the constant growth rate is expected to be 4.25%.
• The firm would like to use the lowest of the three methods (i.e. Bond-yield-risk premium method, CAPM, and DCF) to estimate the cost of equity, and it does not expect to issue any new common stock.

What is its WACC? Do not round your intermediate calculations.