The Saunders Investment Bank has the following financing outstanding. Debt: 45,000 bonds with a coupon rate of 5 percent and a current price quote of 105.1; the bonds have 14 years to maturity and a par value of $1,000. 15,900 zero coupon bonds with a price quote of 24.3, 29 years until maturity, and a par value of $10,000. Both bonds have semiannual compounding.
Preferred stock: 140,000 shares of 3.5 percent preferred stock with a current price of $88 and a par value of $100.
Common stock: 2,000,000 shares of common stock; the current price is $77 and the beta of the stock is 1.05.
Market: The corporate tax rate is 25 percent, the market risk premium is 7 percent, and the risk-free rate is 3.5 percent.
What is the WACC for the company?