Question: Willowbrook, Inc. has 8 2 5 , 0 0 0 shares of common stock selling for $ 5 5 . 0 0 per share. The

Willowbrook, Inc. has 825,000 shares of common stock selling for $55.00 per share. The company is going to pay a $1.14 annual dividend next year. The dividend is expected to grow by 0.75 percent per year. The stock has a beta of 1.12.
The outstanding bond matures in 13 years. 500,000 shares of bond are quoted at a price of 103.40. The bond pays 6.00 percent interest.
There are also 155,000 shares of 8.00 percent preferred stock selling at $109 per share. Par value is $100.
The tax rate is 20 percent.
The current risk-free rate is 5.10 percent and the expected market return is 10 percent.
What is Willowbrook, Inc.s weighted average cost of capital (WACC)?
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