3) Whatey Inc. has a target capital structure consisting of 45% debt, 10% preferred stock, and 45% common equity. Whatley has 10-year, 6.2% semiannual coupon bonds that currently sell for $900. Whatley also has 320,000 preferred shares outstanding. Its 9.70%, $100 par value preferred stock currently sells for $115 per share. Additionally, Whatley has 6 million common shares outstanding. The firm expects to pay a dividend of $2.10 on its common stock at year end. The dividend is expected to grow at a constant rate of 4.00% per year in the future. Whatleys common stock currently sells for $24.50 per share. Flotation costs on new common stock would be 8%, and the firm's marginal tax rate is 21%.

a. What is Whatley Inc.s WACC assuming they can use retained earnings to fund their capital budget?

Please write out the answer and not use excel I need to see step by step so I can learn how to do it.