Use the information below to determine the company's current WACC:
Bonds - Tranche 1:
$20M bond issue, 15 years ago, 5 years to maturity, 5% coupon, bonds currently trade at 82.50%
Bonds - Tranche 2:
$30M bond issue, 10 years ago, 10 years to maturity, 7% coupon, bonds currently trade at 95%
Equity:
There are 10 million shares outstanding and a current market price of $5 per share
Current dividends are $1 per share
Beta is 1.2
Other:
Assume a risk-free rate of 5%
Assume a market rate of return of 18%
The company's current tax rate is 40%