A firm has 2,000,000 shares of common stock outstanding with a market price today of $3.00 each. It has 2,500 bonds outstanding, each with a market value today of $1,600 (160% of face). The bonds mature in 20 years, have a coupon rate of 10%, and pay coupons annually. The firm's beta is 1.4, the risk-free rate is 6%, and the market risk premium is 8%. The tax rate is 40%. Compute the WACC. (Hint, calculate: 1. weights, 2. after tax cost of debt, 3. cost of equity, 4. WACC). Do not use excel.