Answer:
WACC = 11.1%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.
<em>Market of securities</em>
Common stock =  $80 × 32,500=  2,600,000.  
Preferred stock = $95.50 ×  7,350=   701,925.00  
Bond = 407,000/100 × 111.5= 453,805.00  
<em>Cost of each capital type</em>
Common stock= 12.95
Preferred stock = (7.90%× 100)/95.50= 8.3%
Bond= 8.11%× (1-0.4)=4.87%
<em>WACC</em>
Type                      Market Value          Cost           Market value  cost
Common stock   2,600,000.              12.95%         336,700.00  
Preferred            701,925.00              8.3%             58,065.00  
Bond                   4<u>53,805.00  </u>           4.87%            <u>22,100.30 </u>
Total                    <u>3,755,730.00</u>                               <u>  416,865.30</u>  
WACC = (416,865.30  / 3,755,730.00) ×  100
        = 11.1%
WACC = 11.1%