Suppose today is January 1, 2007; MAM Industries issued a 20-year bond with a 9% coupon and a $1,000 face value, payable on January 1, 2027. The bond now sells for $915. the firms after-tax cost of debt is 6.6% with a 34% tax rate. MAM Industries just declared a dividend of $3.50 per share of common stock. The current stock price is $25 per share, and the dividend is expected to increase at a rate of 4% per year for the foreseeable future. the cost of equity capital is 18.56% MAM Industries has a preferred stock issue outstanding which pays an annual dividend of $3.25 per share and currently has a market price of $25 per share, the cost of preferred stock is 13%

Suppose MAMs capital structure is 30% debt, 10% preferred stock, and 60% equity. Using the information above, compute the WACC. (14.416%)