Bonds $3500000preferred stock 1900000Common stock 6500000To finance the purchase

Bonds $3500000preferred stock 1900000Common stock 6500000To finance the purchase we will sell 10-year bonds paying 7.2% atthe market price of$1062. Preferred stock paying a $2.03 can besold for $25.46. Common stock is currently selling $54.75 per shareand paying a dividend of $2.94 last year. Dividend are expected tocontinue growing at a rate of 5.3 a year indefinitely. If the taxrate is 30% what discount rate should be used to evaluate theequipment purchaseWhat is the WACC %?.