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The following information is available: Common Stock: 10,000 shares priced at $40 per share with a beta of 1.5 Preferred Stock: 500 shares priced at

The following information is available:

Common Stock: 10,000 shares priced at $40 per share with a beta of 1.5

Preferred Stock: 500 shares priced at $100 and a dividend yield of 4%.

Bonds: 250, 10 year, 8% semi-annual Bonds outstanding issued 2 years ago priced at $1,050.

Market: T-Bill rate = 2%, Market Rate = 6%, Tax Rate = 35%

What is the Weighted Average Cost of Capital (WACC)?

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