1. SIROM Scientific Solutions has $8 million in equity and $5 million in bank debt on its balance sheet. stock price is $50 and the firm has 200,000 shares outstanding. The bank has outstanding semiannual debt with a price of $900 on a par value of $1000, coupon rate of 4%, and 15 years to maturity. The estimated equity beta is 2. If the market risk premium is 7% and the risk-free rate is 4%, compute the weighted average cost of capital if the firm's tax rate is 30%.