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You are given the following information concerning Parrothead Enterprises:
| Debt: | 10,900 7.4 percent coupon bonds outstanding, with 21 years to maturity and a quoted price of 108.75. These bonds pay interest semiannually. | |
| Common stock: | 320,000 shares of common stock selling for $66.40 per share. The stock has a beta of 1.05 and will pay a dividend of $4.60 next year. The dividend is expected to grow by 5.4 percent per year indefinitely. | |
| Preferred stock: | 9,900 shares of 4.7 percent preferred stock selling at $95.90 per share. | |
| Market: | An expected return of 10.1 percent, a risk-free rate of 5.2 percent, and a 40 percent tax rate. |
Calculate the WACC for Parrothead Enterprises. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
WACC %
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