Working with the debt:

n= 20
c= 10%
PMT
FV

$
100
$
1,000

9%

PV of a single bond therefore; =$1,091

Total value of debt= $1,091.285*1000, = $1,091,285.
Working with the preferred stock:
i
10%
$
7.
Div
50
$
PV
75
Total
$
150,0
Price
00

Working with the equity:

Total value of equity = 120,000* $14.48, = $1,737,600

Target Weights

Total = Value of debt+ value of preferred stock+ value of equity

= $2,978,885
Respective weights:
Wd = 37%
Wp= 5%
We= 58%
Cost of equity:

Re= 3%+ 1.2*( 10%-3%)

=11.4%
WACC calculation:
WACC= Wd*rd (1-t)

+ We*re + Wp*rp
=0.37*0.09*(1-0.4) + 0.58*0.114 + 0.05*0.1
=1.98% + 6.65% +0.5%
= 9.13%