Question 3: Assume that you are on the financial manager of Apple Company and you have collected the following data: The yield on the companys outstanding bonds is 8%; its tax rate is 40%; the next expected dividend is $1 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is 10%; and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget? Required:

Calculate the company's WACC?