Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has $1$ million shares outstanding and a target capital structure consisting of $30\%$ debt; its beta is $1\mathrm{.}4($given its target capital structure$).$ Vandell has $$10\mathrm{.}82$ million in debt that trades at par and pays an $8\%$ interest rate. Vandell$$s free cash flow FCF$0$ is $$2$ million per year and is expected to grow at a constant rate of $5\%$ a year. Vandell pays a $40\%$ combined federal and state tax rate. The risk$-$free rate of interest is $5\%$ and the market risk premium is $6\%.$ Hastings$$s first step is to estimate the current intrinsic value of Vandell.

a$.$ What are Vandell$$s cost of equity and weighted average cost of capital?

Cost of equity can be calculated using CAPM:

Cost of equity $=$Risk free rate$+($Beta$*$Market risk premium$)($Brigham E$.,2019)$

$=5\%+(1\mathrm{.}4*6\%)$

$=5\%+8\mathrm{.}4\%$

$=13\mathrm{.}4\%$

Thus,cost of equity is $13\mathrm{.}40\%$

However, where I$\text{'}$m having the issue is figuring out the WACC.

The WACC according to my book is $11\mathrm{.}18\%$ I do not know how it gets that number. Can someone explain that to me$?$