You are given the following information concerning Black Hills Enterprises:

• Debt: There are 10,200 number of bonds outstanding with 7.2 percent coupon rate. It has 23 years to maturity and a quoted price of 107 percentage of the par value. These bonds pay interest semiannually.
• Common stock: 285,000 shares of common stock selling for $65.70 per share. The stock has a beta of .97 and will pay a dividend of $3.90 next year. The dividend is expected to grow by 5.2 percent per year indefinitely.
• Preferred stock: 9,200 shares outstanding paying $4.6 dividend. It is selling at $95.20 per share.
• Market: An expected return of 10.8 percent, a risk-free rate of 5.1 percent, and a 30 percent tax rate.

Calculate the WACC for Black Hills Enterprises. (Hint: use the cost of equity (R_E) as the average of both the RE using CAPM and DGM approaches) (10 Points)