Problem $13-17$ Preferred Stock and WACC

The Saunders Investment Bank has the following financing outstanding.

Debt:

$45,000$ bonds with a coupon rate of $5$ percent and a current price quote of $105\mathrm{.}1$; the bonds have $14$ years to maturity and a par value of $$1,000.15,900$ zero coupon bonds with a price quote of $24\mathrm{.}3,29$ years until maturity, and a par value of $$10,000.$ Both bonds have semiannual compounding.

Preferred stock:

$140,000$ shares of $3\mathrm{.}5$ percent preferred stock with a current price of $$88$ and a par value of $$100.$

Common stock:

$2,000,000$ shares of common stock; the current price is $$77$ and the beta of the stock is $1\mathrm{.}05.$

Market:

The corporate tax rate is $25$ percent, the market risk premium is $7$ percent, and the risk$-$free rate is $3\mathrm{.}5$ percent.

What is the WACC for the company? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$