Problem $12-17$ Calculating the WACC $[$lO $3]$

You are given the following information on Parrothead Enterprises:

Debt: $\backslash (9,7007\mathrm{.}2\backslash )$ percent coupon bonds outstanding, with $23$ years to maturity and a quoted price of $105\mathrm{.}75.$ These bonds pay interest semiannually and have a par value of $\backslash (\backslash$$ $1,000\backslash ).$

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Common stock: $260,000$ shares of common stock selling for $$65\mathrm{.}20$ per share. The stock

has a beta of $\mathrm{.}97$ and will pay a dividend of $$3\mathrm{.}40$ next year. The

dividend is expected to grow by $5\mathrm{.}2$ percent per year indefinitely.

Preferred stock: $8,700$ shares of $4\mathrm{.}6$ percent preferred stock selling at $$94\mathrm{.}70$ per

share. The par value is $$100$ per share.

Market: $11\mathrm{.}3$ percent expected return, risk$-$free rate of $3\mathrm{.}95$ percent, and a $22$

percent tax rate.

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Calculate the company's WACC.

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

WACC