The Company (1) Co. has 1,179,780 shares of common stock, currently trading at $46 /share. The common stock of Company (1) Co. is expected to pay a dividend next year of $2/share, and it has a Beta calculated at 1.53 . It also has 58,989 shares of preferred stock, trading at $92 /share. The preferred stock pays dividends of 8 %. Finally, Company (1) Co. has 22,260 bonds currently trading at $1,240/bond. The coupon rate is 6 %, and the bonds will mature in 22years. Company (1) Co. expects its dividends to grow at a rate of 18.5 %/year, and it is in a 21% tax bracket. It estimates that the risk-free rate of return is 3 % and the market rate of return is 15.5 %.

Calculate the WACC for Company (1) Co. Be sure to show all your work. NOTE: When calculating the cost of equity, compute the cost using the CAPM method and the DCF (Dividend Constant Growth Method) and average the two.