subject: Financial Management

This is a subjective question, bence you have to write your answer in the toxt-field given below Priya Pickies Lid (PPL) has 2 million shares of common stock outstanding, 1 million shares of 6 percent preferred outstanding, and 300,000 \$1,000 par, 7 percent semiannual coupon bonds outstanding. The stock sells for $70 per share and has a beta of 1.8 , the preferred stock selis tor $40 per share, and the bonds have 15 years to maturity and sell for 80 percent of par. The market return as proxied by Dow Jones are 12 percent, Trbils are yleiding 4 percent, and the firm's tax rate is 35 percent. What is PPL's WACC? [8]