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2] Great Sound Music, Inc. has 20,000 shares of common stock outstanding at a market price Of $26 a share. This stock was originally issued

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2] Great Sound Music, Inc. has 20,000 shares of common stock outstanding at a market price Of $26 a share. This stock was originally issued at $19 per share. The rm also has a bond issue outstanding with a total face 1..'alue of $300,000 which is selling for 97 percent of face value. The cost of equity is 10 percent While the after-tax cost of debt is 5 percent. The rm has a beta of 1.2 and a tax rate of 35 percent. What is Great Sound's weighted average cost of capital

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