You are given the following information concerning ABC Enterprises:

Debt: 350 Bonds, with a market value of $322,000. The bonds have a pre-tax YTM of 6%

Common Stock: 16,000 shares of common stock at a price of $25. The stock has a beta of 1.1

Preferred Stock: 20,000 shares of preferred stock with a market value of $300,000. These shares are priced at $15 and pay a dividend of $1.20 per share indefinately.

Market: The tax rate is 25%, the risk-free rate is 3.5%, and the return on the market is 8.5%

Calculate the WACC for the company.

(Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places)

What formula is used to calculate the Cost of Capital?

What is the weight of Common Stock used for your calculation?