The Saunders Investment Bank has the following financing outstanding. What is the WACC for the company? Debt : 60,000 bonds with a coupon rate of 6 percent and a current price quote of 109.5; the...

The Saunders Investment Bank has the following financing outstanding. What is the WACC for the company?

Debt: 60,000 bonds with a coupon rate of 6 percent and a current price quote of 109.5; the bonds have 20 years to maturity. 230,000 zero coupon bonds with a price quote of 17.5 and 30 years until maturity.

Preferred stock: 150,000 shares of 4 percent preferred stock with a current price of GH79, and a par value of GHC100.

Common stock: 2,600,000 shares of common stock; the current price is GHC65 and the beta of the stock is 1.15.

Market:
the corporate tax rate is 40 percent, the market risk premium is 7 percent, and the risk-free rate is 4 percent.