Saunders Investment Bank has the following financing outstanding. What is the WACC for the company?

Debt: 40,000 bonds with a 7% coupon rate and a current price quote of 11980 the bonds have 25 years to maturity. 150,000 zero coupon bonds with a price quote of 185 and flotation cost of $3 for the zero coupon bonds, and 30 years to maturity.

Preferred Stock: 100,000 shares of 4% preferred stock with a current price of $78, and a par value of $100.

Common Stock: 1,600,000 shares of Common Stock; the current price is $65. And the beta of the stock is 1.1.

Newly issued stock: 200,000 shares of Common Stock were recently issued and sold at $80 per share, with flotation rate 2%. Knowing that the firm keeps 60% of its earnings and its ROE ratio was 10%.

Market: The corporate tax rate is 40%, the market risk premium is 7%, and the risk free rate is 4%.