Problem 13-17 Preferred Stock and WACC

The Saunders Investment Bank has the following financing outstanding.

Debt:	150,000 bonds with a coupon rate of 11 percent and a current price quote of 108.0; the bonds have 20 years to maturity. 320,000 zero coupon bonds with a price quote of 16.0 and 30 years until maturity.
Preferred stock:	240,000 shares of 9 percent preferred stock with a current price of $67, and a par value of $100.
Common stock:	3,500,000 shares of common stock; the current price is $53, and the beta of the stock is .90.
Market:	The corporate tax rate is 25 percent, the market risk premium is 8 percent, and the risk-free rate is 5 percent.

What is the WACC for the company? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

WACC

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