Sun land industries has 8% coupon bonds outstanding. These bonds have a market price of $954.41 pay interest semiannually and will mature in six years. The tax rate is 35% the common stock of sunland industries has a beta of 1.6% and the market risk free rate is 3% and the expected return on the market is 9%.

In addition to common stock, Sunland has 600,000 preferred shares outstanding that pay a quarterly dividend of $0.40 per share and are currently trading for $20 a share. The company's outstanding bonds have a face value of 237, 843,275 there are 2.5 million shares of common stock outstanding with a current market price of $98 per share.

Compute the WACC for Sunland industries.