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You are given the following information concerning Parrothead Enterprises: Debt: 10,500 7.0 percent coupon bonds outstanding, with 25 years to maturity and a quoted price of 107.75. These bonds pay interest semiannually. Common stock: 300,000 shares of common stock selling for $66.00 per share. The stock has a beta of 1.01 and will pay a dividend of $4.20 next year. The dividend is expected to grow by 5.0 percent per year indefinitely. Preferred stock: 9,500 shares of 4.50 percent preferred stock selling at $95.5 per share. Market: A 10.5 percent expected return, a 5.0 percent risk-free rate, and a 35 percent tax rate. Required: Calculate the WACC for Parrothead Enterprises.(Do not include the percent sign ($).Round your answer to 2 decimal places (e.g., 32.16).)
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