Capital structure of Morgan Company given below:

Debt=35%, Preferred stock=15% and Common equity= 50%.

Calculate WACC where below information are given.

Bond yield to maturity=9%

Corporate tax rate =35%

Dividend preferred stock =$8.5

Price preferred stock=$100

Flotation cost preferred stock= $2

Dividend common stock =$1.2

Price common stock =$30

Growth rate common stock =9%