Answer:
 the company's WACC is 10.04%
Explanation:
Weighted Average Cost of Capital (WACC) is the minimum return that a project must offer before it can be accepted. It shows the risk of the company.
<em>Capital Source           Market Value        Weight           Cost Total     Weight</em>  
Debt                            $8,400,000            27.71%             4.389 %      1.22%
Common stock           $24,190,000           71.17%              12.2%         8.68%
Preferred stock           $1,400,000              4.12%               3.5%         0.14%
Total                          $ 33,990,000          100.00%                            10.04%
<u><em>Calculation of Market Value and Cost of Debt</em></u>
Market Value = 8,000×($1,000×105%) = $8,400,000
Cost of Debt = interest × (1 - tax rate)
                       = 5.7% × ( 1-0.23)
                       =  4.389 %
<u><em>Calculation of Market Value and Cost of </em></u><u>Common stock</u>
Market Value = 410,000× $59 = $24,190,000
Cost of Common stock = Risk free Rate + Beta × Market Premium
                                        = 4.5% + 1.10× 7%
                                        = 12.2%
<u><em>Calculation of Market Value and Cost of </em></u><u>Common stock</u>
Market Value = 17,500× $80 = $1,400,000
Cost of Preferred stock = 3.5%