You have gathered the following information for Frosty Ale, Inc., which has a 40 percent marginal tax rate. 2 million common shares outstanding 120,000 bonds outstanding Current yield to maturity is 7% Estimated market risk premium is 6% Current common stock price is $25 per share Current preferred stock price is $30 per share 90,000 preferred shares outstanding Estimated beta of stock is 1.2 10 year U.S. Treasury yield is 4.8% Annual preferred dividend is $3 Bonds are trading at par Bonds have $1,000 face value What is the firms weighted average cost of capital (WACC)? Be sure to very clearly label/identify each input or item and what you are doing to have the opportunity to receive partial credit.