Formulas to use:

WACC= [(1-t ) (D/(total financing)KD)]+(E/(total financing)KE )

KE=ig+eRp

Information for Kohl's:

Current stock price = $86.00.

Beta = 0.60.

Number of shares outstanding = 833 million.

Book value of debt = $2.9 billion.

Yield on bonds with risk similar to Kohl's = 3.0%.

Tax rate = 35%.

Market information:

Yield on long-term government bonds = 2.5%.

Market risk premium = 6.8%.

Calculate the weighted-average cost of capital given the information above.