LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 percent coupon, paid semiannually, a current maturity of 17 years, and sell for $1,162 (Hint: use the current bond price, $1,162, when computing market value of debt). It has 100,000 bonds outstanding. The firm can issue new 20year maturity semiannual bonds at par but will incur flotation costs of $50 per bond ( H int: the coupon rate on the new bonds = the YTM on existing bonds). The firm could sell, at par, $100 preferred stock that pays a 12 percent annual dividend that is currently selling for $120. The firm currently has 1,000,000 shares of preferred stock outstanding. Rollins beta is 1.89, the risk free rate is 1.41 percent, and the market risk premium is 6%. The common stock currently sells for $100 a share and there are 5 million shares outstanding. The firms marginal tax rate is 40 percent. What is the WACC