You are given the following information concerning Parrothead Enterprises:

Debt:	9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 105.75. These bonds pay interest semiannually.
Common stock:	260,000 shares of common stock selling for $65.20 per share. The stock has a beta of .92 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 5.2 percent per year indefinitely.
Preferred stock:	8,700 shares of 4.6 percent preferred stock selling at $94.70 per share.
Market:	A 11.3 percent expected return, a risk-free rate of 5.2 percent, and a 30 percent tax rate.

Required:

Calculate the WACC for Parrothead Enterprises.

WACC _____

Organic Produce Corporation has 8.3 million shares of common stock outstanding, 580,000 shares of 7.3 percent preferred stock outstanding, and 183,000 of 8.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $64.80 per share and has a beta of 1.28, the preferred stock currently sells for $107.20 per share, and the bonds have 14 years to maturity and sell for 92 percent of par. The market risk premium is 6.95 percent, T-bills are yielding 5.65 percent, and the firms tax rate is 40 percent.

(a)	What is the firm's market value capital structure? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).)

Market value weight of debt ____
Market value weight of preferred stock ____
Market value weight of equity _____

(b)	If the firm is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to discount the projects cash flows?

WACC ____