Prerna Corp. has a target capital structure of 38% long-term debt, 4% preferred stock, and the remainder funded by common stock. The yield on its 4% coupon bonds is 5.1%. The preferred stock is priced at $55 and pays $5.72 in dividends per share annually. The risk premium on the firm's common stock relative to its debt is 6%. The firm's tax rate is 36%. The firm's W.A.C.C. is ________%.

Margin of error for correct responses: +/- .10%.

Prerna Corp. has a target capital structure of 40% long-term debt, 9% preferred stock, and the remainder funded by common stock. The yield on its 4% coupon bonds is 5.6%. The preferred stock is priced at $55 and pays $6.86 in dividends per share annually. The risk premium on the firm's common stock relative to its debt is 6%. The firm's tax rate is 35%. The firm's W.A.C.C. is ________%.

Margin of error for correct responses: +/- .10%.