You were hired as a consultant to Quigley Company, whose target capital structure is 40%

debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the

yield on the preferred is 6.00%, the cost of common from retained earnings is 12.25%, and

the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's

WACC