Use the following information to determine the weighted average cost of capital (WACC) for Fake Company Sigma (FCS).

single bond issue for FCS has a yield to maturity of 6.7%; the bonds also have a coupon rate of 5.0%

FCS management targets the company's capital structure at 35% debt and 65% common equity; there is no preferred equity taxes are determined based on an average 28.5% tax rate over the past five years

FCS common stock has a dividend of $2.75 that typically grows about 4.0% each year

5-year US Treasury notes have a yield of 2.8%, and reps from the company's investment bank estimate a market risk premium of 6.0%

FCS's stock beta is 1.3