5) Smith Inc, operates a very successful chain of facial and cosmetic products and needs to raise fund for their further expansion to other region of the world. The firm's balance sheet at the end of 2010 is as follows: At present the firm's common stock is selling for a price equal to its book value, and the firm's bonds are selling at par. The company's management estimates that the market requires an 18% return on its common stock, the firm's bonds command a yield to maturity of 8%, and the firm faces a tax rate of 35%. What is Smith's weighted average cost of capital (WACC)