Your company has two divisions. One division sells software and the other division sells computers. You have decided that Dell Computer is very similar to your computer division in terms of both risk and financing. You find the following information: 10,000 individual bonds with a face value of $1,000 that will mature in 8 years' time and offer a coupon that is paid half-yearly. The coupon rate for these bonds is 6% per annum. The current market interest rate for these bonds is 7% per annum. 700,000 ordinary shares, which are expected to pay a $1 dividend per share next year. Dividends are expected to grow at 5% per annum perpetually. The current share price is $25. 300,000 preference shares, which pay an annual dividend of 0.5% on a stated value of $100. Each preference share is trading at a market price of $10. The company tax rate is 30%. a) Compute the WACC