QUESTION 4: A firm has a capital structure containing 40 percent debt, 10 percent preferred stock, and 50 percent common stock equity. The firm's debt has a yield to maturity of 9.50 percent. Its preferred stock's annual dividend is $7.50 and the preferred stock's current market price is $50.00 per share. The firm's common stock has a beta of 0.90 and the risk-free rate and the market return are currently 4.0 percent and 13.5 percent, respectively. The firm is subject to a 40 percent tax rate. What is the WACC for the firm? (Use 3-decimal places) [Total: 8 marks]