FINA 3001 Fall 2021 Exercise #4 (10 points) The Book Value balance sheet of Comstock Inc. is presented below. Comstock Inc. has 10,000,000 outstanding shares of common stock with a market price of $30 per share. The equity beta of Comstock common stock is 1.2. Comstock also has $100,000,000 in face value of 9% annual coupon bonds outstanding. These bonds have ten years left to maturity and a market YTM of 7%. The Risk Free Rate is 4%, and the market portfolio offers an expected return of 10%. The firm has a tax rate of 30%. Cash $ 20,000,000 Current Liabilities $ 40,000,000 Current Assets $ 70,000,000 Long-Term Debt S100,000,000 Total Liabilities $140,000,000 Long-Term Assets $150,000,000 Common Stock ($1.00 par) $ 10,000,000 Retained Earnings $ 90,000,000 Total Equity $100,000,000 Total Assets $240,000,000 Total Liabilities and Equity $240,000,000 Calculate the weighted average cost of capital for Comstock Inc