Hi, I have a question from Entrepreneurial Finance:

Given the following information, what is the weighted average cost of capital? in millions Total book (and market) value of debt: $40,000 Book pre-tax interest rate on debt 8% Market pre-tax interest rate on debt 10% Tax rate 25% Book Value of equity $50,000 Shares of stock outstanding 10,000 Current stock price of stock $12 Investors expect high growth and a 20% return on their investment