1. Use the information below to determine a companys WACC (assuming a 40% tax rate):

• A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price.
• The companys 100,000 shares of preferred stock pays a $3 annual dividend, and sell for $30 per share.
• The companys 500,000 shares of common stock sell for $25 per share, have a beta of 1.5, the risk-free rate is 4%, and the market return is 12%.