3.Total capital of Charles & Co Ltds is $10,000,000 out of which common stock amounts to $6.00 Million and the shares are being traded in the market at $16 per share. Companys beta is calculated as 1.20 while market return is 15% and risk-free rate is 8%. Companys 10% coupon bonds with 20 years maturity are also traded in the market and are currently selling for $ 1100/bond. Company has not issued any preferred stock and the tax rate is 40%.

You are required to calculate the Weighted Average Cost of Capital of Charles & Co Ltd?

Paper solution is preferable!