Question: ABC Inc. ' s capital structure is 5 5 % debt, 2 0 % preferred, and 3 0 % common equity, and its tax rate

ABC Inc.'s capital structure is 55% debt, 20% preferred, and 30% common equity, and its tax rate is 25%. For financing, (a) ABC sold a non-callable bond several years ago that now has 15 years to maturity with 8% annual coupon, paid semiannually, at a price of $1,055, and a par value of $1,000.(b) ABC sold a perpetual preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.00% of the price. (c) ABC also has beta =1.2, risk free rate of return rRF =6.00%; market risk premium RPM =7.00%;
The question is: What is the company's WACC?

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