Problem

$$ Given the following information for Morgan Co$.,$ find the WACC. Assume a $35\%$ tax rate.

Debt: $5,0009\mathrm{.}4\%$ coupon bonds outstanding, $1000$ par value, $25$ yrs to maturity, trading at $109\%$ of par with semiannual payments.

Common stock: $165,000$ shares outstanding selling for $$62.$ Beta is $1\mathrm{.}15.$

Market: $6\mathrm{.}5\%$ market risk premium and $5\mathrm{.}5\%$risk$$free$$rate$.$