2. [Ch 10] You are the CFO of a company, and you need to analyze a new product line. The company has 8% coupon-bonds outstanding with $1000 face value that trade at par. Their stock, which trades at $25 on the NASDAQ has a beta of 1.25 and just paid a dividend of $3.00 and the dividends are expected to grow at 5% annually, indefinitely. The company has a debt-to-equity ratio of 3 and pays taxes at the 35% annual tax rate. If the expected return on the market is 10% and treasury bills pay 4%, what is the weighted average cost of capital for FIN317 Corp? (assume no preferred stock) Please show 4 decimals, i.e. 0.xxxx or x.xx%. HINT: Use the debt-to-equity-ratio to find the weights; wd = DEBT/(Total Assets) and WS = EQUITY/(Total Assets). Use the technique (formula) we used back in Chapter 3