Problem2(2 points) Mr. Berti the finance manager of Giannini Corporation (GC) has complied the following information to estimate the company's WACC. The GC's noncallable bonds mature in 7 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $942.96. The bond pays coupon payment semi-annually. GC's stock sells for $20 per share, its last dividend was $1.00, and its growth rate is a constant 6 percent. The target capital structure consists of 35% debt and the balance is common equity. GC does not expect to issue any new shares. The GC's tax rate is 40%. What is GC's WACC? * In addition to show your step-by-step calculations, you must explain in your own words, in three lines, the process that you have used to solve this problem. There is no credit, if no explanation is given