X New Tab New Tab Canvas X po 9 pts E Question 21 You have been assigned to calculate the weighted Average Cost-of-Capital (WACC) for your small firm. The company has three sources of long-term capital. Its marginal tax rate is 24% First, there are 2.564.000 shares of common stock outstanding, which are currently trading at $37.51 per share. Recently, your firm announced Earnings per Share (EPS) of $3.42. You expect earnings to grow at 1.55% per year indefinitely Second, the firm has 211.500 shares of preferred stock outstanding that pay annual dividends of $9.00 per share. These securities are selling for $103.47 per share. Third, there is an issue of 38,500 coupon bonds outstanding. These bonds have a face value of $1.000, mature in seventeen years, and pay 5.74% annual coupons. These instruments are currently trading for $1.05423. Based on the data provided, estimate the firm's Weighted Average-Cost-of-Capital (WACC). 11.03% 3.7 8.498 452 09.10% F DISE 3 5 6 7 8 Q W E R T Y U A S D