The ZAM corporation is evaluating a 10-year project to devel…

The ZAM corporation is evaluating a 10-year project to develop yam burgers. The company is publicly traded, and its stock has a beta of 1.0. The company’s 10-year debt is rated “A,” and the spread for 10-year “A” rated bonds is 2%, and the liquidity premium for the bond is 1%. The 10-year Treasury rate is 2%. The company has preferred stocks with an annual dividend of $5, and it is trading for $100. The floatation cost for preferred stock is 5%. The market risk premium is 5%. The company’s capital structure consists of 40% equity, 40% debt, and the rest in preferred stock. The corporate tax rate is 30%. What is the WACC for the project?