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Hart's rm has 2,5, shares ofeormnon stock outstanding with a market price todayr of $3.12) each. It has 2.5m] bonds outstanding, each with a market

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Hart's rm has 2,5, shares ofeormnon stock outstanding with a market price todayr of $3.12") each. It has 2.5m] bonds outstanding, each with a market value today.r of $1,6ll {l% of face}. The bonds mature in it] years, have a coupon rate of 113%. and pay.r coupons annually. The rm's beta is 1.3., the risk free rate is 5%, and the market risk premium is 9%. The tax rate is 4G%. Compute the WADE. (Hint, ealeulate: 1. weights, 2. after tax ooat of dehIt1 3. eost of equity, 4. WAGE]

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