Regent Fireplaces Ltd. is establishing an appropriate discount rate to apply to this years investment projects. The controller has suggested the weighted average cost of capital (WACC) would be an appropriate rate and has gathered the following information as a start to finding the WACC: Selected information from the December 31, 2022 Balance Sheet Bonds $20,000,000 Preferred shares (45,000 shares issued and outstanding) 4,000,000 Common shares (5,000,000 shares issued and outstanding) 10,000,000 Retained earnings 16,000,000 Total $50,000,000 The bonds, which have 15 years to maturity, have a coupon rate of 6.0% with interest paid semi-annually. Current market yields on this risk security are currently about 4.5%. Flotation costs would be 1.0% of the issue price. The preferred shares with a fixed dividend $4.10 per share currently trade at $82.00 per share. Flotation expenses of a new issue of preferred would be $3.20 per share. The common shares are currently trading at $8.00 per share. The most recent dividend was $0.12 per share. Flotation expenses would be $0.25 per share. The risk-free rate is currently 1.75%, and the market rate of return is 7.25%. Regent Fireplaces Ltd. has a beta of 1.25. Regent's tax rate is 30%. All flotation costs are stated as after-tax.