$1.$ Problem $12-17-$ Calculating the WACC $(2\mathrm{.}5$ Points$).$ Given the following information for Parrothead Enterprises, find the WACC.

Debt: $9,7007\mathrm{.}2$ percent coupon bonds outstanding, with $23$ years to maturity and a quoted price of $105\mathrm{.}75.$ These bonds pay interest semiannually. The current YTM is $7\%.$

Common stock: $260,000$ shares outstanding, selling for $$65\mathrm{.}20$ per share. The stock has a beta of $\mathrm{.}97$ and just paid a dividend of $$3\mathrm{.}40.$ The dividend is expected to grow by $5\mathrm{.}2$ percent per year indefinitely. The common stock has a required return of $15\%.$

Preferred stock: $8,700$ shares of $4\mathrm{.}6$ percent preferred stock outstanding, currently selling for $$94\mathrm{.}70$ per share.

Market: $11\mathrm{.}3$ percent expected return, $3\mathrm{.}95$ percent risk$-$free rate, and a $22$ percent tax rate.

$2.$ a$.$ Define the optimal capital structure.

b$.$ is it possible to calculate an exact capital structure... explain:

c$.$ Based on the major concepts leaned in this class, in real life, explain how you believe a firm manages capital structure: