You have been assigned to calculate the Weighted Average-Cost-of-Capital (WACC) for your small firm. The company has sources of long- term capital. Its marginal tax rate is 23% First, there are 2,354,000 shares of common stock outstanding, which are currently trading at $37.51 per share. Recently, your firm announced Earnings per Share (EPS) of $3.24. You expect earnings to grow at 1.55% per year indefinitely Second, there is an issue of 42.500 coupon bonds outstanding. These bonds have a face value of $1,000, mature in seventeen years, and pay 5.74% annual coupons. These instruments are currently trading for $923,16. Based on the current price, estimate the yield-to-maturity on the firm's bonds. 6.22% 5.74% 5.15% 6 SON 7.50%