Practice #$2$

Your firm has $100,000$ shares of stock, each selling for $$10,$ and $925$$$1,000$ face value bonds trading at $108\mathrm{.}1081$ percent of face value and yielding $7\mathrm{.}23$ percent. In addition, the firm has $40,000$ shares of preferred stock trading at $$25.$ The preferred stock has a $9$ percent dividend yield. You know the yield on short$-$term U$.$S$.$ Treasuries is $1\mathrm{.}5\%,$ the historical market risk premium is $6\%.$ If the firm has a $40$ percent marginal tax rate and the stock has a beta of $1\mathrm{.}5,$ what is its WACC?