Question $6(15$ marks$)$

NW Power Corp., who has a $35\%$ tax rate, presented you with the following information:

Debt: $10,000$ of $6\mathrm{.}4\%$ coupon bonds outstanding, $$1,000$ par value, $25$ years to maturity, and selling for $108\%$ of par; the bonds make semi$-$annual payments.

Common stock: $495,000$ shares outstanding and selling for $$63$ per share; the beta is $1\mathrm{.}15.$

Preferred stock: $35,000$ outstanding shares of $$3\mathrm{.}50$ preferred stock currently selling for $$72$ per share.

Market: $7\%$ market risk premium and $3\mathrm{.}2\%$ risk$-$free rate.

Calculate the weighted average cost of capital.