A private, family-owned business has no debt. The current market price of the companys stock is $45.00 per share, with 10,000 shares outstanding. The Company has gone to the Bank A and requested a loan of $300,000. Bank A is willing to lend the money at 15%, but only if the debt does not exceed 50% of the total capital and the WACC is less than or equal to 17% Long-term Treasury bonds have recently risen to 4%, and the Market has been returning 20%. The Companys tax rate is 40%, growth has been 5% per year, its beta is 1.20, and next year, it expects to pay a dividend of $2.50 per share.

1. What is the WACC using CAPM?