Estimate the WACC given the following information. For the

Estimate the WACC given the following information. For the cost of equity, use both the dividend growth model and the SML. Use the historical dividend stream to estimate the future growth rate of dividends.
Bond, interest paid semi-annually

12 years to maturity                 6% coupon rate            Price = $1,087              Face value = $1,000
Equity

(Rm – Rf) = 6%              T-bill rate = 1.60%            10 year government rate = 2.85%       Beta = 1.1

Historical dividends              2013    2014    2015    2016    2017
                                                 $1.15   1.16     1.18     1.20     1.22                

Share price = $41
T = .34
Ks = D1/P + g
Ks = Rf + B(Rm – Rf)

Average return on S&P 500 1926-2016 was 10%.
The firm has 500,000 shares of stock outstanding and a $15,000,000 of long-term debt on the Balance Sheet.