QUESTION 4 [20 MARKS] The following information for Cladine Co is given as follows, Assume the company's tax rate is 35 percent Debt: 8,000 6.5 percent coupon bonds outstanding, P1,000 par value, 25 years to maturity, selling for 106 percent of par, the bonds make semiannual payments. Common stock: 310,000 shares outstanding, selling for P57 per share; the beta is 1.05. Preferred stock: 15,000 shares of 4 percent preferred stock outstanding, currently selling for P72 per share. Market: 7 percent market risk premium and 4.5 percent risk-free rate. REQUIRED: Calculate the WACC for this company. (20 marks)