Calculate Smythe Inc.$\text{'}$s weighted$-$average cost of capital using the following information:

$$ Smyt

Middle Align

debt issue outstanding. It has a face value of $$50,000,000,20$ years remaining to maturity, a $9\%$ coupon rate $($paid annually$),$ and a current market value of $90\%$ of par.

$$ Smyt

hares of $$1$ par value common stock outstanding. The current stock price is $$35.$ Smythe's total shareholders' equity is $$40,000,000.$

$$ The risk$-$free rate is $5\%.$ Smythe's common stock has a beta of $1\mathrm{.}5.$ The Market risk premium is $6\%.$

$$ Smythe's marginal tax rate is $21\%.$