You are provided the given information for Lightning Power Co. Suppose company's tax rate is 40%.
| Debt: |
5,000 6.6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 109 percent of par; the bonds make semiannual payments.
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| Common stock: |
380,000 shares outstanding, selling for $56 per share; the beta is 1.12. |
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| Preferred stock: |
16,000 shares of 3 percent preferred stock outstanding, currently selling for $76 per share.
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| Market: |
5 percent market risk premium and 4.60 percent risk-free rate. |
Determine company's WACC?