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Fargo Technologies has a share price of $70; 1 million shares outstanding; a YTM of 9%; an annual coupon rate of 4.8%; and a corporate

Fargo Technologies has a share price of $70; 1 million shares outstanding; a YTM of 9%; an annual coupon rate of 4.8%; and a corporate tax rate of 30%. Its book value of interest-bearing debt is $200M; the market value of debt is $250M; the book value of equity is $300M; the cost of equity is 14%. What is the WACC (weighted average cost of capital; Kw )?

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