Calculating the WACC. You are given the following information concerning Parroth

Calculating the WACC. You are given the following information concerning Parrothead Enterprises:Debt:70007.5 percent coupon bonds outstanding with 20 years to maturity and a quoted price of 108. These bonds pay interest semiannually.COll1mon slack:180000 shares of coml11on stock selling for $60 per share. The stock has a beta of 0.90 and will pay a dividend of $2.80 next year. The dividend is expected to grow by 6 percent per year indefinitely.Preferred stock:8000 shares of 5.5 percent preferred stock selling at $94 per share.Market:A 12 percent expected return a 5 percent risk-free rate and a 35 percent tax rate.Calculate the WACC for Parrothead Enterprises.