Bob and Randy meet and decide that they both would be willing to invest $2.5 million in additional equity ($5mm total) to fund the growth of the business (They already invested $7.5 million of their own equity) so long as they can find an equal amount ($5mm) of additional debt. With this $10mm of additional capital, the cousins believe that they can grow the business to over 30 locations. Based on historical results and their forecasts, the cousins believe that they can generate a 20% rate of return on the incremental $5mm of equity. So, presuming the following, what would be the weighted average cost of capital (WACC) for the incremental $10 million of investment: Cost of Equity = 20% Interest rate on incremental Debt = 10% Best Bargains tax rate will be unchanged from the 2020 rate

WACC = ?

Please explain.