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You have collected the following information on capital components of Tarheel Co - Debt: 4 , 0 0 0 bonds with a coupon rate of

You have collected the following information on capital components of Tarheel Co-Debt:
4,000 bonds with a coupon rate of 9%, par value of $1,000, and a remaining time to maturity of 10 years. Bonds make semiannual coupon payments. These bonds are trading at par value in the market right now.
Common Stock:
95,000 shares with a par value of $20 are outstanding. The company paid a dividend of $2.2 per share recently. The dividends of the company are expected to grow at a constant rate of 5% per year indefinitely. The beta of the company is 0.75.
Preferred Stock:
10,000 shares with a par value of $100 are outstanding. The dividend rate for this preferred stock is 12.1% on par value. This preferred stock is selling for $110 per share right now.
The market risk premium is 8% percent and the risk-free rate is 6%. If the company's tax rate is 35%, calculate the WACC forthiscompany.

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