Hook co. has sh.100 million face value of outstanding debt with a coupon of 10% and a par value of sh. 1000. The bonds make annual payments, have a current market of sh. 1025 and are redeemable at par after 10 years. The company also has 1 million shares of common stock with book value per share of $ 35 and a market value per share of $ 50. The current beta of the stock is 1.5 the Treasury bill rate is 5% and the market risk premium is 8%. The company is the 30% tax bracket.

Required

The company's weighted average cost of capital using;

i) book value weights

ii) market value weights