7) Company XYZ has 1

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7) Company XYZ has 1.4 million shares outstanding with a market value of $20 per share. Company has just declared an dividend of $1.25 on Preference shares which are being sold at $25, the total value of preference shares is $2 million. The firm's debt is publically traded and has been quoted at 93% of the face value, the face value of the debts is $5 million, which yields 11%. The risk free rate is 8% and the market risk premium is 7%, the estimated beta of the company is .74. The corporate tax of the company is 35%. Calculate the WACC of the company.