$\backslash$table$[[$Debt:$,\backslash$table$[[2,5008$ percent coupon bonds outstanding, $$1,000$ par value, $19$ years to$],[$maturity$,$ selling for $104$ percent of par; the bonds have a YTM of $7\mathrm{.}6\%$ and make$],[$semiannual payments.$]]],[$Common stock:,$55,000$ shares outstanding, selling for $$59$ per share; the beta is $1\mathrm{.}13.],[$Preferred stock:,$\backslash$table$[[8,500$ shares of $6\mathrm{.}5$ percent preferred stock outstanding, currently selling for $$105$ per$],[$share$.]]],[$Market:$,10$ percent market risk premium and $6\mathrm{.}5$ percent risk$-$free rate.$]]$

Assume the company's tax rate is $32$ percent. Find the WACC, show all your work including intermediary steps.

Short Answer

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