What is the capital structure of this company based on market values? • Bond issue #1, maturity 12 years, coupon rate 9%, current YTM 9.75%, book value $10 million • Bond issue #2, maturity 16 years, coupon rate 9%, current YTM 7.75%, book value $15 million • Preferred stock, 500,000 shares, par $10 per share • Common stock, par $1 per share, book value $10 million • Market price of preferred stock is $17.50, market price of common stock is $15 What is the WACC if: • Tax rate = 40% • Preferred stock dividend = $1.50 per share • Common stock dividend = $.375 per share • Beta is 1.15 • RFR = 5.21% • Expected return of the market = 14%