Tiger Corp wants to build a manufacturing plant which will cost $13.48 million to build. The manufacturing plant has an eight-year tax life, and Tiger Corp uses straight-line depreciation. At the end of the project (f.e., the end of Year 5), the plant can be scrapped and the salvage value of the plant will be $1.62 million. The following market data on Tiger Corp's securities are current: Debt: Common stock: Preferred stock: Market: 92,400 bonds outstanding with a semi-annual coupon rate of 7%, 24 years to maturity, selling (market value) for $938; the bonds have a $1,000 par value each. 1,720,000 shares outstanding, selling (market value) for $95.20 per share; the beta is 1.17. 81,000 shares of 6.3 percent preferred stock outstanding, selling (market value) for $93.20 per share. 7.2 percent expected market risk premium; 5.1 percent risk-free rate. Tiger Corp's tax rate is 22 percent. The new project is somewhat riskier than a typical project for Tiger Corp. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate (WAAC) to use when evaluating the project. Please show the set-by-step process computing the WACC.

Tieer Corp wants to beild a manifacturine plent which will eest $13.48 milion to bullet end of Year 5), the plant can be scrapped and the salvage value of the plant will be $1.62 mattion. The following market data on Tieer Coms securities are current: Debt: Common stock: Preferred stock: Market: 92,400 bonds outstanding with a semi-annual coupon rate of 7x,24 vears to maturity, selling (market value) for $938; the bonds have a $1,000 par value each. 1,720,000 shares outstanding. selling inarket value) for 595.20 per share: the beta is 1.17. 81,000 shares of 6.3 percent preferred stock outstanding, selling (market value) for $93.20 per share. 7.2 percent expected market risk premium; 5.1 percent risk-free rate. Tiger Corp's tax rate is 22 percent. The new project is somewhat riskier than a typical project for Tiger Corp. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate (WAAC) to use when evaluating the project. Please show the set-by-step process of computing the WACC