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TelUs Communication Inc. uses 6 5 % equity and 3 5 % debt for all of its financing needs. Shares of the common stock are

TelUs Communication Inc. uses 65% equity and 35% debt for all of its financing needs. Shares of the common stock are currently selling at $72. The growth rate of the firm 5 years ago was 3%. Given the recent increase in interest rates, the bonds of the firm are now trading at $820. with an annual coupon rate of 7%,15 years to maturity and a face value of $1000. The company has a beta of 1.10 and a 35% marginal tax rate. The market risk premium is 7% and the risk-free rate is 6%. What is the WACC?

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