Forsythe Inc. is evaluating a new project. This project represents a near mirror image of the firms current business ventures; therefore, management has determined WACC is an appropriate measure for the discount rate. Compute the firms WACC assuming the following information (all values listed are in USD and current market values have been assessed) (7 points)

4 million in bonds, YTM of 5%.

3 million in bank debt, YTM of 4%.

8 million in preferred stock, required return of 11%

25 million in common stock, required return of 14.5%

Tax rate of 21%