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Ewha Corp has 1 2 0 , 0 0 0 shares of common stock outstanding at a market price of $ 3 5 per share.

Ewha Corp has 120,000 shares of common stock outstanding at a market price of $35 per share. This stock was originally issued at $40 per share. The firm also has a bond issue outstanding with a total face value of $2,000,000 which is selling for 110 percent of par. The cost of equity is 18 percent while the after tax cost of debt is 10.0 percent. The firm has a beta of 1.50. What is weighted average xost of capital?
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