Assume the company’s tax rate is 23 percent.
Debt: 16,800 5.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 106.4 percent of par; the bonds make semiannual payments.
Common stock: 550,000 shares outstanding, selling for $81.75 per share; beta is 1.15.
Preferred stock: 21,500 shares of 4.15 percent preferred stock outstanding, currently selling for $91.30 per share. The par value is $100.
Market: 6.4 percent market risk premium and 2.9 percent risk-free rate.
What is the company's WACC?