You are given the following information

concerning Parrothead Enterprises:

Debt: 13,000 6.2 percent coupon bonds outstanding, with

15 years to maturity and a quoted price of 107. These

bonds pay interest semiannually.

Common stock: 345,000 shares of common stock selling for $73.50

per share. The stock has a beta of .90 and will pay a

dividend of $3.35 next year. The dividend is expected

to grow by 5 percent per year indefinitely.

Preferred stock: 10,000 shares of 4.1 percent preferred stock selling at

$86 per share.

Market: 12 percent expected return, risk-free rate of

3.5 percent, and a 35 percent tax rate.

Calculate the WACC for Parrothead Enterprises.