Vernon company sells a wide range of goods through two retail stores operated in adjoining cities. vernon purchases most of the goods it sells in its stores on credit, promising to pay suppliers later. occasionally, a short-term note payable is used to obtain cash for current use. the following transactions were selected from those occurring during the fiscal year, which ends on december 31: purchased merchandise on credit for $18,000 on january 10. borrowed $45,000 cash on march 1 from city bank by signing an interest-bearing note payable. the note is due at the end of six months (august 31) and has an annual interest rate of 10% payable at maturity.

Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) wacc %