The Saunders Investment Bank has the following financing outstanding.

Debt: $160,000$ bonds with a coupon rate of $12$ percent and a current price quote of $113$; the bonds have $20$ years to maturity. $330,000$ zero coupon bonds with a price quote of $15\mathrm{.}5$ and $30$ years until maturity. Both bonds have a par value of $$1,000$ and semiannual coupons.

eBook

Hint

Print

References

Preferred stock: $250,000$ shares of $10$ percent preferred stock with a current price of $$66,$ and a par value of $$100.$

Common stock: $3,600,000$ shares of common stock; the current price is $$52,$ and the beta of the stock is $\mathrm{.}85.$

Market: The corporate tax rate is $25$ percent, the market risk premium is $7$ percent, and the risk$-$free rate is $4$ percent.

What is the WACC for the company?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,$