Anna is a Vice President at the J Corporation. The company is considering
investing in a new factory and Anna must decide whether it is a feasible
project. In order to assess the viability of the project, Anna must first calculate
the rate of return that equity holders expect from the company stock. The
annual returns for J Corp. and for a market index are given below. Currently,
the risk-free rate of return is				2.2%	and the market risk-premium is				4.6%	.

a) What is the beta of J Corp.'s stock?
(1 Mark)(Round your answer to two decimal places)
b) Using the CAPM model, what is the expected rate of return on J Corp. stock for the coming year?

Year	J Corp. Return (%)	Market Return (%)
1	-0.97	-0.30
2	13.97	9.66
3	18.38	12.60
4	18.38	12.60
5	-18.52	-12.00
6	24.59	16.74
7	37.04	25.04
8	19.06	13.05
9	4.43	3.30
10	15.47	10.66
11	-9.48	-5.97
12	-6.52	-4.00

Refer to Question 2. Now that Anna has determined an appropriate rate
of return for J Corp.'s stock, she must calculate the firm's Weighted Average
Cost of Capital (WACC). There are currently				55.2	Million
J Corp. common shares outstanding. Each share is currently priced at
$16.58	. As well, the firm has		8,000	bonds outstanding and each
bond has a face value of $10,000, a yield to maturity of					3.66%	and a
quoted price of		$10,266.00	. J Corp.'s tax rate is 30%.
J Corp. has no preferred shares outstanding.

What is J Corp.'s WACC?