WACC Finance Question

To help estimate  the company's WACC, Marshall Inc. recently hired you as a consultant. You have obtained the following information. (1) The firm's non-callable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,050.00. (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20. (4) The target capital structure consists of 35% debt with the balance coming from common equity. The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is Marshall Inc.'s WACC?

         (Hint: The first step in solving this problem is to calculate the yield on the company's bonds - it IS NOT 8.00%.  8.00% is the Coupon Rate.)