Problem 1: WACC Whacked Corporation currently has 30,000 of its 9% semi-annual coupon bonds outstanding; par value is $1,000. The bonds will mature in 15 years and are currently priced at $1,340 per bond. The firm also has one million preferred shares outstanding, currently priced at $11.00, and is offering an annual (preferred) dividend of $1.20. Furthermore, Whacked has two million common shares outstanding, i.e., with a current market price of $30.00 per share; the company is expected to pay a $3.20 (common) dividend one year from today, which is expected to increase by 7%, annually (forever). Typically, Whacked pays floatation costs of 2% of the price on all newly issued securities. Assuming Whacked is subject to a 35% effective tax rate, what is the weighted average cost of capital