Anchor Manufacturing Company, Inc. (AMCI), a very small company in terms of market capitalization, has total tangible fixed assets with a book value of $4 million financed 60 percent with debt and 40 percent with equity capital. The debt issued by the firm carries AA rating. The credit spread is 300 basis points of 10-year treasury yield. The 10-year treasury is currently yielding 4.5%. The cost of equity capital is 14 percent. The company has EBITDA of $ 850,000 and a tax rate of 30 percent. The fixed assets are depreciated at the rate of 10% written down value basis. Determine the weighted average cost of Capital & Residual Income