ZYX, Inc.   recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. 

(1) The firm's noncallable  bonds mature in 2  5 years, have an 5  .50  % semi-annual coupon, a par value of $1,000, and a market price of $905.00  . The firm has 800,000 bonds outstanding.

(2) The company's tax rate is 40%. 

(3) The firm has 6%, $100 par value preferred stocks. There are 2 million shares outstanding. The preferred stock currently sells at $110 per share. 

(4) The risk-free rate is 2.00  %, the market risk premium is 8.50%, and the common stock's beta is 1.10  . 

(5) The firm has 15 million shares outstanding of common stocks which sells at $80 per share. The firm just paid a dividend of $2.25 per share, and the constant growth rate is expected to be 7%. 

(6) The firm would like to use the average of the two methods (i.e. CAPM and DCF) to estimate the cost of equity, and it does not expect to issue any new common stock. 

What is its WACC? Do not round your intermediate calculations.