1) XYZ Company currently has 1.2 million common shares of stock outstanding and the stock has a beta of 1.5. It also has $10 million face value of bonds that matures 12 May, 2031 and 7 % coupon with annual payments, and are priced to yield 14%. Use 30/360 convention method. Settlement date is 28 April 2020. If XYZ issues up to $2,500,000 of new bonds, the bonds will be priced at par and have a yield of 14 %; if it issues bonds beyond $2,500,000, the expected yield on the entire issuance will be 15 %. XYZ has known that market value of its shares are traded at the value of $10 a share and the new shares can be sold at the same price. The current risk-free rate is 3% and the expected market return is 10 %. XYZ's tax rate is 30 %. What is the WACC if XYZ raises $7.5 million of new capital (both equity and debt) while maintaining the same debt-to-equity ratio.