find the weighted average cost of capital for the DEF Corp. if its tax rate is 40 % and it has the following associated data:

Balance Sheet

Cash 600 Bank Notes 400

A/R 250 Long term bonds 1000

Inventory 600

P/E 1500 Equity 1550

_____________ __________________________

Total 2950 TL + NW 2950

Assets

In addition, the pre-tax cost of bonds is 6%, the stock sells for $32/share and the current dividend is $2.10. The dividends are growing at a rate of 8 %.