2. Given the following data for Water's Beginning firm: - 1 million shares of common stock outstanding: price $12 per share. - The firm's outstanding bonds have ten years to maturity, a total face value of debt = $5 million, face value per bond of $1,000, current price = $985 with a coupon rate of 10%. Interest is paid annually. Yield to maturity of the bond id 10.25% - The risk-free rate is 7%, and analysts' expected return for the market is 14%. - Water's Beginning stock has a beta of 1.2 and is in the 34% marginal tax bracket. - What's the WACC? (Use market value proportions for calculations) [Chapter 12]