The capital structure for Magellan Corporation is shown below. Currently, flotation costs are $13\%$ of

market value for a new bond issue and $$3$ per share for preferred stock. The dividends for common stock

were $$2\mathrm{.}50$ last year and have an estimated annual growth rate of $6\%.$ Market prices are $$1,020$ for

bonds, $$20$ for preferred stock, and $$30$ for common stock. Assume a $34\%$ tax rate.

Compute the company's WACC. Is this WACC considered reasonable given the assumptions and other

relevant information? Explain.