Bahama Resorts Company currently has 1.2million common shares of stock outstanding and the stock has a beta of 2.2.It also has $10million face value of bonds that have 3years remaining to maturity and 8% coupon with semi-annual payments,and yield to maturity is 13.65%.lf Bahama Resorts issues up to $2.5 million of new bonds,the bonds will be priced at par and have a yield of 13.26%;if it issues bonds beyond $2.5million,the expected yield to maturity on the entire issuance will be 16%.Bahama Resorts has learned that it can issue new common stock at $10 a share.The current risk-free rate of interest is 3% and the market risk premium is 10%:Bahama Resorts' marginal tax rate is 20%.If Bahama Resorts raises $7.5 million of new capital while maintain the same target debt-to-equity ratio, What is the weighted average cost of capital (WACC)?Explain in detailed steps.