Question $8$

$15pts$

Company B$\text{'}$s capital structure is composed of debt, preferred stocks and common stocks. The debt that the company holds has a value of $$105,000$ and the YTM on these bonds is $6\mathrm{.}25\%.$ The preferred stock sums a total current value of $$125,000,$ with a cost of $8\mathrm{.}15\%.$ Common stock is valued at $$325,000$ and costs $9\mathrm{.}35\%.$ The tax rate is $21\%.$ Estimate this company's pretax WACC.