What started out as a small shop in the North Pole, has grown so that Santa's firm was incorporated as Santa's Workshop (SW). SW has both common equity and preferred equity for both his naughty and nice shareholders, as well as debt in the capital structure. Currently 12 million common shares are outstanding and trading at $25 per share. The holiday industry is a risky business and beta for SW is 2.0. The expected return on the market is 9% with a risk-free rate of 3%. Another 4 million preferred shares are trading at $25 per share and pay an annual dividend of $2.50. Santa's Workshop currently has $600 million in market value of debt outstanding, with bond's currently trading at $1,100. The bond's pay 8% coupons compounded semi-annually and will mature is 5 years. Determine the WACC for Santa's Workshop if the marginal tax rate is 35%. Express your solution as a decimal with four digits of accuracy (i.e. 0.2375). Please use the question prompts below to organize your solution on your paper, so partial credit is available. Cost of common equity: Cost of preferred equity: Cost of debt: Capital structure values/weights: What is the WACC