Calculus Co recalculares its weighted average cost of capital (WACC) every year. Based on facts below, calculate its current WACC. (Be sure to show all calculations to maximize possible marks)

a. 250,000 common shares are outstanding with a current market price of $95 per share

b. The market premium on the shares is 7%

c. There are 10,000 units 7% semi annual coupon bonds outstanding that come due in 15 years. They have a par value of $1,000 and are selling 96% of par.

d. Calculus'beta is 1.2

e. The marginal tax rate is 34%.

The risk free rate is 5%