a. The following balance sheet and information are given for Mancini International Corporation (MIC):

Current Assets	$2,000,000	Current Liabilities	$1,000,000
Short-term Securities	0	Long-term Liabilities (Bonds)	$5,000,000
Long-term Assets	7,000.000	Equity	$3,000,000
Total	$9,000,000	Total	$9,000,000

Additional information: The MICs bond has a face value of $1,000 and pays 10 percent semiannual coupon. The bond matures in 12 years and sells at a price of $920 in the bond market. The beta of MIC is 1.25, market risk premium is 7.95 percent and risk-free rate is 2.50 percent. The MICs tax rate is 40%.

What is Mancinis WACC?

b. The following information is given for Salsano Company (SACO):

• Bond outstanding: 3,000 bonds, selling at $995 per bond.

• Common stock outstanding: 260,000 shares, selling at $23.40 per share.

• The before-tax cost of debt of the company is 12.31%, beta of Salsano is 1.40, market risk premium is 7.95%, tax rate 40%, and risk-free rate is 2.50%? What is Salsanos WACC?

Required: Calculate WACC for each company. Please describe, in writing, how you calculate WACCs in 6 lines.