1. Consider the following information (15 points).

	Book Value	Unit Price	# of Units	Coupon Rate	Maturity
Bonds	$30 mm	$980	30,000	9%	10 years
Debentures	50 mm	900	50,000	8%	10 years
Preferred Stock	20 mm	90	200,000	10%	-
Common Stock	100 mm	40	6,000,000	-	-
Retained Earnings	100 mm	-		-	-

Assume a tax rate of 40%. The expected common stock dividend one year from now is $2 and it is expected to grow at 8% per annum. Determine the ATWACOC.