Murray Electronics uses, according to market value, 30% debt, 10% preferred and 60% equity. The YTM on the firm’s debt is currently 8.5% and the firm’s marginal tax rate is 35%. He firm’s preferred stock is selling for $111 and has an annual dividend of $9.50. The firm’s stock beta is 1.3 and the current risk-free rate is 4%. The overall market rate of return is 12% and the firm plans on using retained earned earnings exclusively. What is the firm’s WACC?

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