29. The following information pertains to the capital structure of a firm: Debt: Bonds with a face value of $1000 and a 20-year term were issued five years ago with a coupon rate of 8%. Today these...

29. The following information pertains to the capital structure of a firm:

Debt: Bonds with a face value of $1000 and a 20-year term were issued five years ago with a coupon rate of 8%. Today these bonds are selling for $846.30.

Preferred stock: Preferred stock is paying an annual dividend of $9.50 and is currently trading at $79.16.

Common equity: The current market price of common stock is $22.50 per share. The annual dividend just paid was $1.70 per share, and the dividend is expected to grow indefinitely at a constant rate of 6%.

Target capital structure: The firm has agreed that its optimal capital structure should consist of 30% debt, 20% preferred stock, and 50% equity.

If the combined federal and state corporate tax rate is 40%, what would be the firm's approximate WACC in light of its target capital structure?