You will need to use the following assumptions in your analysis: o There are 9M shares of Alpha common stock outstanding at $55 each.

o Alpha has a beta of 1.5. Use the CAPM to find the cost of common stock.

o The risk-free rate is 3.5%, which is the current yield on a 10-year Treasury.

o The expected return on the market portfolio is 10%.

o Alpha has 2m shares of preferred stock outstanding, carrying a dividend of $2.25 per share, currently trading at $27.

There are currently 200,000 bonds, each with a face value of $1,000, with a coupon rate of 6.75%. These bonds are trading at 109.5% of par value (i.e., $1,095). The bonds were originally issued with a 20 year maturity. Assume that interest is paid annually. Alpha's marginal tax rate is 40%. Annual Coupon Rate

What is Alpha Company's WACC?