The Saunders Investment Bank has the following financing outstanding.

Debt: 110,000 bonds with a coupon rate of 7 percent and a current price quote of 109.5; the bonds have 20 years to maturity. 280,000 zero coupon bonds with a price quote of 18 and 30 years until maturity. Assume semiannual compounding.

Preferred stock: 200,000 shares of 5 percent preferred stock with a current price of $71, and a par value of $100.

Common stock: 3,100,000 shares of common stock; the current price is $57, and the beta of the stock is 1.1.

Market: The corporate tax rate is 25 percent, the market risk premium is 8 percent, and the risk-free rate is 5 percent.

 

What is the WACC for the company?