You are given the following information concerning Parrothead Enterprises:

Debt $,9,4007\mathrm{.}2$ percent coupon bonds outstanding, with $24$ years to maturity

and a quoted price of $108\mathrm{.}25.$ These bonds have a par value of $$2,000$

and pay interest semiannually.

$325,000$ shares of common stock selling for $$66\mathrm{.}50$ per share. The stock

has a beta of $1\mathrm{.}10$ and will pay a dividend of $$4\mathrm{.}70$ next year. The

dividend is expected to grow by $5\mathrm{.}5$ percent per year indefinitely.

Preferred stock: $10,000$ shares of $4\mathrm{.}75$ percent preferred stock selling at $$96\mathrm{.}00$ per

share.

$10\mathrm{.}5$ percent expected return, a risk$-$free rate of $4\mathrm{.}60$ percent, and a

$25$ percent tax rate.

What is the firm's cost of each form of financing?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.$

Calculate the WACC for the company.

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32.$I

WACC

$\%$You are given the following information concerning Parrothead Enterprises:

Debt $9,4007\mathrm{.}2$ percent coupon bonds outstanding, with $24$ years to maturity and a quoted price of $108\mathrm{.}25.$ These bonds have a par value of $$2,000$ and pay interest semiannually.

Common stock: $325,000$ shares of common stock selling for $$66\mathrm{.}50$ per share. The stock has a beta of $1\mathrm{.}10$ and will pay a dividend of $$4\mathrm{.}70$ next year. The dividend is expected to grow by $5\mathrm{.}5$ percent per year indefinitely.

Preferred stock: $10,000$ shares of $4\mathrm{.}75$ percent preferred stock selling at $$96\mathrm{.}00$ per share.

Market: $10\mathrm{.}5$ percent expected return, a risk$-$free rate of $4\mathrm{.}60$ percent, and a $25$ percent tax rate.

What is the firm's cost of each form of financing?