You are given the following information concerning parrothead enterprises: debt: 9,000 6.2 percent coupon bonds outstanding, with 20 years to maturity and a quoted price of 104. these bonds pay interest semiannually. common stock: 225,000 shares of common stock selling for $64.50 per share. the stock has a beta of 0.85 and will pay a dividend of $2.70 next year. the dividend is expected to grow by 5 percent per year indefinitely. preferred stock: 8,000 shares of 4.5 percent preferred stock selling at $94 per share. market: a 12 percent expected return, a 5 percent risk-free rate, and a 35 percent tax rate.
required:
calculate the wacc for parrothead enterprises

John and daphne are saving for their daughter ellen's college education. ellen just turned 10 at (t = 0), and she will be entering college 8 years from now (at t = 8). college tuition and expenses at state u. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. ellen should graduate in 4 years--if she takes longer or wants to go to graduate school, she will be on her own. tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11).so far, john and daphne have accumulated $15,000 in their college savings account (at t = 0). their long-run financial plan is to add an additional $5,000 in each of the next 4 years (at t = 1, 2, 3, and 4). then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. they expect their investment account to earn 9%. how large must the annual payments at t = 5, 6, and 7 be to cover ellen's anticipated college costs? a. $1,965.21b. $2,068.64c. $2,177.51d. $2,292.12e. $2,412.76